Real Estate – Bubble, what Bubble?

• Published 17 Sep 2009

Developers are raising capital and snapping up land, but buyers are still active and prices are going down as well as up. It might be a bubble, as many Chinese economists are now saying, but we don’t quite see it that way.

Of the many planned fundraisings that we noted in our August 21 Alert, Glorious Property’s $1.5bn H-share Initial Public Offering will probably be the first to go ahead when it lists in early October in Hong Kong. The developer plans to use 20% of the proceeds to repay debt and 10% for working capital, while the vast majority – 70% – will go towards funding current projects and land acquisition.

China Confidential Funds

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Other Articles on this Issue

• Funds Data

  China back in vogue

• Macro View

  Talking bubbles, but spending more

• The Big Call

  Domestic brand cars to ramp up market share

• Postcard From No 528

  International board: a Barmecidal feast?

• Consumer China

  Internet ads – Search and Rescue

  Sohu – Buoyed by games

  Sina – Behind the curve

  Baidu – Search Successful

• Financial China

  Banks’ Net Interest Margin rebounding

  Bank regulator blinks on credit tightening

• Guest Column

  Banks, property and large caps to shine

• Forbidden City

  Renminbi internationalisation – The master plan

• The Best of Chinese Commentators

  Following the hot money

  How sustainable is the economic rebound?

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