In this article, we discuss 5 Chinese real estate stocks to watch as analysts predict more defaults and crises. If you want to read about some more Chinese real estate stocks to watch, go directly to 10 Chinese Real Estate Stocks to Watch as Analysts Predict More Defaults and Crisis.
5. China Evergrande Group (OTC:EGRNF)
Market Capitalization as of July 25: $2.7 billion
China Evergrande Group (OTC:EGRNF) is an investment holding firm that primarily engages in the property development business. The firm has interests in the development of residential properties, property investment, management, and construction, as well as a host of other businesses like new energy vehicles, hotel operations, and finance. In late May, news agency Reuters reported that the firm was considering a deal to pay $19 billion in offshore public bonds with cash installments and equity through the sale of two Hong Kong-listed units of the firm.
China Evergrande Group (OTC:EGRNF) shares have tanked this year as the sales of homes fall drastically, leading to several missed payments on bonds. The firm is in default with $22.7 billion of offshore debt that includes loans and private bonds.
4. Country Garden Holdings Company Limited (OTC:CTRYF)
Market Capitalization as of July 25: $9.5 billion
Country Garden Holdings Company Limited (OTC:CTRYF) is an investment holding firm that engages in the development and construction of real estate properties, mostly in China. The firm develops properties like townhouses, condominiums, car parks, and retail shops. It also builds and runs hotels. The firm has interests in an array of other businesses as well, like robots, electronic hardware, and food. The firm was founded in 1992 and is based in Foshan. It employs over 150,000 people.
Country Garden Holdings Company Limited (OTC:CTRYF) posted a revenue of over RMB82 billion last year, up from RMB70 billion in the previous year. The shares have dropped by over 60% so far this year amid a crisis in the property sector.
3. China Vanke Co., Ltd. (OTC:CHVKF)
Market Capitalization as of July 25: $28 billion
China Vanke Co., Ltd. (OTC:CHVKF) engages in the development and sale of properties. The firm develops and sells residential buildings, commercial offices, and ancillary facilities. It also has interests in the hotel and resort, education, and housing rental businesses. The firm was founded in 1984 and is based in the Yantian region of Shenzhen. It employs more than 139,000 people in mainland China. In addition to the property sector, the firm also engages in the logistics and warehousing business.
Late last year, amid the default of Evergrande, one of the largest property developers in China, the Chinese government had asked state-backed property firms like China Vanke Co., Ltd. (OTC:CHVKF) to buy some of the assets of the former.
2. China Construction Bank Corporation (OTC:CICHY)
Market Capitalization as of July 25: $160 billion
China Construction Bank Corporation (OTC:CICHY) provides banking and related financial services. Some of these include personal business, car, and housing loans. The company was founded in 1954 and is headquartered in Beijing. The firm runs more than 14,000 banking outlets in China and employs over 375,000 people. In late March, the firm posted earnings for the fiscal year, reporting earnings per share of RMB1.19 and a revenue of RMB605 billion, up more than 5% compared to the revenue over the same period last year.
China Construction Bank Corporation (OTC:CICHY) shares have been buoyed in recent weeks after the Chinese government announced plans to cut benchmark for mortgage rates. The firm has a forward dividend yield of 8.55%.
1. China Merchants Bank Co., Ltd. (OTC:CIHKY)
Market Capitalization as of July 25: $133 billion
China Merchants Bank Co., Ltd. (OTC:CIHKY) operates as a banking firm. Some of the loans it offers include personal, commercial real estate, consumption, housing, and car loans. The firm was founded in 1987 and is based in the Futian region of Shenzhen. It employs more than 100,000 people. The company owns and runs over 140 bank branches, 1,770 sub-branches, 2,812 self-service centers, 6,592 self-service machines, and 14,746 visual counters in China. It has a forward dividend yield of 4.21%.
China Merchants Bank Co., Ltd. (OTC:CIHKY) posted a revenue of over $41 billion in 2021, up from $34 billion in 2020. The company has offices in Hong Kong, New York, London, Singapore, Luxembourg, Sydney, and Taipei, in addition to China.
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