Reading Between the Headlines: Blackrock's China Real Estate Move

Reuters: BlackRock sees new opportunity in China real estate
BlackRock Inc is ready to increase its China real estate portfolio exposure as it sees good entry points following the weakness in the nation's economy and credit environment, a senior executive of the U.S. money manager said on Monday.
Sounds bullish! But you must always read to the end.
Currency depreciation, in fact, can make real estate investment favorable, if a firm hedges its currency exposure early, he said.

"When a currency depreciates, hard assets tend to appreciate, because people take flight from paper currency deprecation into hard asset."
Blackrock is no doubt buying some choice properties, but they're engaged in a hedged currency play. The more Blackrock invests, the more downward pressure they will put on the yuan.

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