In this article, we discuss 5 stocks to watch amid China’s mortgage crisis. If you want to check out more stocks to monitor in this situation and read our detailed analysis of China’s real estate crisis, click ‘Caught in the Middle’: China’s Mortgage Crisis and 10 Stocks to Watch.
5. China Communications Construction Company Limited (HKSE:1800.HK)
China Communications Construction Company Limited (HKSE:1800.HK) is a Beijing-based company that is involved in the infrastructure construction, design, and dredging businesses. It has operations in Mainland China, Australia, Hong Kong, Africa, the Middle East, and Southeast Asia. The construction company is impacted by the Chinese mortgage crisis as more people become wary of housing and builders, due to the contractors who do not finish the projects on time or the banks who might not be willing to lend money as they fear their loans might not be returned.
4. Anhui Conch Cement Company Limited (HKSE:0914.HK)
Anhui Conch Cement Company Limited (HKSE:0914.HK) is a Wuhu-based company that deals in clinker, cement, and concrete products, in addition to offering construction and installation services for industrial purposes, logistics services, and mining expertise. As the housing crisis in China reaches its peak, demand for construction materials such as cement and concrete will plummet, which is not ideal for companies like Anhui Conch Cement Company Limited (HKSE:0914.HK).
3. China Vanke Co., Ltd. (HKSE:2202.HK)
China Vanke Co., Ltd. (HKSE:2202.HK) was incorporated in 1984 and is headquartered in Shenzhen, the People’s Republic of China. The company is focused on the development and sale of residential buildings, commercial offices, and other ancillary facilities in Mainland China, Hong Kong, and internationally. China Vanke Co., Ltd. (HKSE:2202.HK) is one of the companies under pressure amid the Chinese mortgage crisis, as the banks reduce home loans amid threats of default and customers generally distrust the contractors to complete projects on promised deadlines.
2. Sany Heavy Industry Co., Ltd (SSE:600031.SS)
Sany Heavy Industry Co., Ltd (SSE:600031.SS) is a Beijing-based company that manufactures and sells construction equipment and machinery worldwide, such as concrete machinery, excavators, hoisting machinery, pile driving machinery, and road construction machinery. As the housing crisis escalates in China, demand for construction machinery will fade in the near-term as well. However, if the government pushes the Evergrande Group to deliver on their promises to customers and finish construction rapidly, Sany Heavy Industry Co., Ltd (SSE:600031.SS) might see elevated demand.
1. Bank of China Limited (HKSE:3988.HK)
Bank of China Limited (HKSE:3988.HK) is based in Beijing, offering banking and financial services. The company operates through six segments – Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. Bank of China Limited (HKSE:3988.HK) is in the center of the mortgage crisis and its earnings are threatened as the Chinese government forces banks to support the economy by giving out loans when interest and mortgage payments are not guaranteed.
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