I would not buy them, but to give you an idea of how cheap some Chinese assets have become, the 2014 9.125% dollar-denominated bonds of China Properties are yielding 45%. Yup….a whopping 45%!
That’s a pretty clear message that Chinese investors don’t expect Chinese real estate prices to rebound enough to prevent Chinese developers from defaulting on their bonds. Most of the $586 billion stimulus is going to infrsstructure projects and not bailing out real estate developers.
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- Down payment for Hong Kong luxury properties rise (10/26/09)
- China’s loses appetite for U.S. t-bonds (02/19/10)
- Indian banks avoid toxic bonds (10/20/08)
