Who can accept a 97% fall from share price ?This monthly chart paints a gloomy view of the many property developers listed in China, all crippled with huge debts. They won't be able to survive without stimulus help from the government and that could take a very long time.
Price is now back to its 2011 share price, pathetic and humilating to those who had invested in these companies......It is a double whammy if you already lose value over your physical property + money in the shares of these developers. In short, stay away from this sector, I expect more fall in property prices in the coming months.........
Low price is DEFINITELY not a reason to buy coz you could be holding on to these shares for an ultra long time. Yes, you may argue that it could be a turn around company since the government wouldn't let it go bankrupt but neither would the share price recover as well to its glorious days.
Would you want to buy the property that is depreciating in value ?
