City: "Time is right" to buy Chinese real estate shares

Citigroup strategies have recommended investors to buy Chinese real estate shares, as the government’s support and improved management practices in businesses are expected to improve the sector’s profitability. “We believe it is an appropriate time to meet the shares of the Chinese real estate sector over a two -year period, as property rights are still being improved thanks to the rotation of assets and improved prices.” The recommendation of “City” came after the brokerage business became less pessimistic to the sector in February, and the hope associated with government policies and the indicators of sales stability. The analysts said they expect “positive support” from the meeting of the Political Bureau of the Communist Party of China at the end of April, after Prime Minister Lee Qiang urged officials to improve their efforts to support the real estate market. The slowdown in the fall in house prices in China showed that the data recently released that the fall in house prices in China slowed again in March before a trade war escalated with the United States. City said although April is a low season for sales of new homes, expectations are positive for the month of June thanks to the operations to increase the supplies from the new homes offered for sale after the housing that occurred earlier has renewed. The two analysts also said that making changes to the positions of senior management of companies such as “China Vanke” and “Greentown China Holdings” as a reflection of “the improvement of control in order to increase the value of shareholders by improving management’s efficiency and structure. The property development companies, which are to an increase in profitable financial expectation. lead. “The” Bloomberg Intelligence “index for the shares of Chinese real estate development companies dropped by about 10% this year, while Shanghai Shanszin (CSI 300), a reference indicator of local shares, fell by less than 4%.