Hao Hong: Can Property Save the Day – Again?

  • Chinese property sector now a zero-sum game and inversely correlates with the overall market. Property easing doesn’t necessarily mean broad market rally.
  • Property is highly correlated with China’s macro savings rate. The lower the savings rate, the better the property sector. But leverage will also be higher.
  • Hong Kong is cheap, with neutral to positive technical signs. Patience.
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