surged by about 16% this month — Morgan Stanley analysts say about 40% of China's steel consumption is used in property construction.The situation is one of "strong expectations, but weak reality," and market prices have deviated from the fundamentals, Sheng Mingxing, ferrous metals analyst at Nanhua Research Institute, said in Chinese translated by CNBC.
This really is a temporary relief in terms of the developers having to meet less debt repayment needs in the near future...The new measures, widely reported in China but not officially released, stipulate loan extensions, call for treating developers the same whether they are state-owned or not and support bond issuance. Neither regulator responded to CNBC's request for comment.
"The key is that we still need the fundamental underlying home sales market to improve," he said, noting homebuyer confidence relies on whether developers can finish building and delivering apartments.when construction was delayed. Homes in China are typically sold ahead of completion, generating a major source of cash flow for developers.
They are surging so China’s top government officials can cash out. So they will crash after that!
Remember evergrande.
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Source: CNBC - 🏆 12. / 72 Read more »