Friday, 12 September 2008

China Property Market Set for ‘Meltdown,’ Morgan Stanley Says

Property and bank stocks in SSE and HSI will be under selling pressure with this kind of news. So how to expect both indices to reverse up so soon?

1 comment:

Guanyu said...

China Property Market Set for ‘Meltdown,’ Morgan Stanley Says

Sept. 12 (Bloomberg) -- China’s property market could be headed for a “meltdown’’ as home prices and sales decline, and bank earnings will be affected, according to Morgan Stanley.

“Property prices are already cracking in China in major cities,’’ wrote Morgan Stanley analysts led by Jerry Lou in a note today. “We believe the likelihood of a property sector meltdown is high. The impact on banks’ earnings may be substantial.’’

Morgan Stanley has an “underweight’’ on financials, which include banks and properties.