China Property Jumps to Top Credit Risk in Bank of America Global Survey

The ratio of investors concerned about China’s housing sector more than doubled to 33% in September from 15% last month, according to the latest BofA global survey of fund managers, which included 222 participants with $616 billion in assets under management. US or EU commercial real estate, which was seen as the top credit risk in the August poll, moved down to the second spot.

The survey came as distressed Chinese property developers struggle to negotiate with creditors to extend repayments. Country Garden Holdings Co., once the country’s largest builders, had been asking to stretch out principal payments just days after it dodged a default on dollar securities at the last minute. The deadline for votes on two of eight securities it had sought to extend was pushed back until later Tuesday, people familiar with the matter told Bloomberg News.

Nearly 60% of participants in the survey believed further support from China over the next 6 months will be limited to policy fine-tuning, while only 12% expected a so-called fiscal “bazooka” and merely 4% anticipated some big monetary stimulus. Fifteen percent of the investors saw no meaningful measures at all.

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Marketmind: China's weak property stocks set the paceA look at the day ahead in European and global markets from Kevin Buckland A light calendar for Europe today means markets are likely to take their cues ...
Source: SaltWire Network - 🏆 45. / 63 Read more »

Marketmind: China's weak property stocks set the paceA light calendar for Europe today means markets are likely to take their cues from Asia, and there's a lot going on - particularly in China. Property shares are taking a beating after weekend data showed new home sales in China's biggest cities slumped by half in the first week of this month. Country Garden, China's biggest private developer, added to pressure on the sector at the centre of the country's economic woes as it faces a new round of voting by creditors - the third this month - to avert default, in this case by extending debt repayments to onshore creditors by three years.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »