CSJ Refutes Implications of Li Ka-shing Sales

China Securities Journal put out a piece saying Li Ka-shing's sale of Mainland real estate developments is not a bearish sign. This comes after several days of bearish speculation by investors. (See: Investor Mood Shifts on China)

In summary, with the rapid development of China's real estate market, with the number of quality mainland housing prices to grow, with the tightening of land and management, standardization, with the rapid rise in first-tier cities land, with the real estate gold ten In passing, the industry profit margins continue to decline, including Li Ka-shing, including many traditional Hong Kong developers have no way to continue to purchase land in the mainland, development, fewer and fewer projects, the scale of operation will inevitably continue to shrink, institutional and team configuration is also inevitable compression. Even the high-quality property, hold business value, also decreased significantly compared to the previous.

It's just the real estate sector internal, and Li Ka-shing's selling, divestment, real estate may also involve factors outside. For example, the Chinese economy has entered a new normal, economic growth in the high-growth into the mainland investment opportunities and value, compared to the previous 10 - reduced by 20 years. Again, the new government is committed to deepening reform, vigorously anti-corruption, government-business relations and patterns change dramatically. Also, Li Ka-shing has been diversified, multinational development, real estate is just one industry, shrink the mainland real estate business, bigger and other businesses to increase international investment in the UK, it is normal.

In short, in recent years, the sale of several properties in Mainland Li Ka-shing, is the result of many factors, not simply understood as: Lee Superman serious bearish mainland property market, housing prices determine the existence of a large bubble, so in advance to flee the market.

iFeng: 李嘉诚抛售背后的三大秘密 并非看空内地楼市