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.
Related Posts
- China and Japan ditch U.S. bonds (06/15/09)
- China owns $799 billion of U.S. bonds (11/18/09)
- Down payment for Hong Kong luxury properties rise (10/26/09)
- Indian banks avoid toxic bonds (10/20/08)
- Capital Land of Singapore buys $2.2 billion of China dirt (01/19/10)
