Markets May Focus Less on Property Drag in Chinese Developers' 1H Results

Dow Jones
08/11

1038 GMT - Investors are likely to look beyond legacy issues of Chinese developers' upcoming 1H results, according to HSBC analysts in a research note. "We think the market is already well aware of the legacy landbank drag, and the incremental negative surprise is limited," they note. The margin outlook embedded in unbooked sales and presold projects should provide better visibility on the pace and magnitude of margin recovery, they note. Management confidence in luxury sales strength and pricing upside is also worth watching, they say.

 

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