This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Investors Selling on Real Estate 'Panic' in China

BEIJING (TheStreet) -- Chinese stock investors punished the nation's biggest property developers and banks Monday on mixed signals about the health of the real estate industry.

One securities firm (China Merchants Securities) cited a "panic mood" on the Shanghai, Shenzhen and Hong Kong exchanges among property market investors.

What many considered good news Monday came from a government report pointing to slower growth for new home prices in major cities, easing concerns about a possible burst for what some call a bubble market.

The National Bureau of Statistics said its monthly survey of 70 cities found the average price of a newly built home rose 0.49% in January from the month before, compared to a 0.51% jump between December and November. The data stoked hopes for a more sustainable property market, which Beijing policymakers have been trying to engineer for years through credit and interest rate controls.

But bad news for stocks came from securities analyst and media reports that some banks had suspended real estate lending in cities affected by collapsing demand for new homes.

The newspaper 21st Century Business Herald said "provisions and notices" of frozen credit had been issued in recent days by the Bank of Communications, China Merchants Bank and China Citic Bank. The official Xinhua news agency said Industrial and Commercial Bank of China had "suspended loans to some property projects until the end of March."

The country's largest state-owned banks -- Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China -- denied any suspensions for their real estate lending, according to a report on the Sohu business Web portal.

But bank stocks took a beating anyway, with ICBC losing 2%, Bank of China off 1.7% and ABC down 1.2% on mainland exchanges Monday.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.25 -0.28%
FB $87.09 0.21%
GOOG $522.74 0.17%
TSLA $277.39 3.10%
YHOO $39.41 0.20%

Markets

DOW 17,715.52 -42.39 -0.24%
S&P 500 2,072.29 -5.13 -0.25%
NASDAQ 4,997.5630 -15.56 -0.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs