stockmarketwalk Sector overview
Nowadays, there are many news published around the China’s real estate sector, it is, because it has the world on edge. China’s real estate sector has been staggering from crisis to crisis.
Many constructions have not been finished yet and developments have been stopped since the property developers have run out of capital.
China’s property market is in a slump triggered after Evergrande’s debt default last year. Total mortgages at stalled Chinese developments takes around 2 trillion yuan ($296 billion), according to a study at GF Securities Co.
By the end of 2020, China’s local government debt took roughly $4 trillion. The estimated “hidden” or “shadow” debt can be as high as $8 trillion, which is more than half the China’s GDP.
In addition, not only Evergrande group is the one in the trouble. Several indebted property companies have already defaulted or heading towards default like Sinic Holdings Group, Modern Land or Sunac.
However, China is the world’s second-largest economy, too big to fail. The government considers to launch a real estate fund to help real estate developers solve the debt crisis, aiming for a budget target of up to 300 billion yuan ($44 billion). The country is still the manufacturing center of the world and if the Chinese economy falters, countries around the world will suffer from slower and more expensive import.
For those, who believe in recovery, it has compiled a list of compelling choices using Yahoo Finance Stock Screener. However, please bear in mind that as always, the article is not intended to encourage anyone to invest in China’s real estate sector, it has been published for informational purpose only.
| Ticker | Company | Market cap | Sector | Industry |
|---|---|---|---|---|
| SSE 600325 | Zhuhai Huafa Properties Co.,Ltd | CNY 16,3 billion | Real Estate | Development |
| SSE 600383 | Gemdale Corporation | CNY 45,9 billion | Real Estate | Development |
| SZSE 000002 | China Vanke Co., Ltd. | CNY 183,3 billion | Real Estate | Development |
| SSE 600177 | Youngor Group Co.,Ltd | CNY 28,9 billion | Real Estate | Development |
| SSE 600064 | Nanjing Gaoke Company Limited | CNY 11,6 billion | Real Estate | Real Estate Services |
Source: Yahoo Finance database
Top 5 Chinese Property Stocks With High Dividend Yield
Market capitalization: CNY 15,0 billion, forward annual dividend yield: 6,07%, P/E 5,47
The main profile of Huafa Industrial Co., Ltd. can be characterized by real estate development. Its business activity has primary focus on development of residential and commercial properties. The company focuses also on housing loans, real estate broker and renovation activities. It was founded in 1980, headquartered in Zhuhai, China.
There is typically 1 dividend per year in summertime. 5 Year Average Dividend Yield: 6,60%
3. China Vanke Co., Ltd. (Ticker SZSE 000002) – China
Market capitalization: CNY 183,3 billion, forward annual dividend yield: 7,68%, P/E 8,32
China Vanke Co., Ltd. engages in development and sale of properties. It operates through Property Development and Property Management segments. The Property Development segment includes development of residential properties, commercial offices, and other ancillary facilities. The Property Management segment provides management and related services to purchasers and tenants of the firm’s developed residential properties and shopping arcades, in addition properties developed by external property developers. It was founded in 1984, headquartered in Shenzhen, China.
There is typically 1 dividend per year in July. 5 Year Average Dividend Yield: 3,99%
2. Youngor Group Co.,Ltd (Ticker SSE 600177) – China
Market capitalization: CNY 28,9 billion, forward annual dividend yield: 7,97%, P/E 4,31
The main profile of Youngor Group Co.,Ltd is real estate development and activities in financial investment in China and worldwide. Focusing on the real estate sector, it develops, leases and sells condominiums and residential buildings. Furthermore, its business activities include health care, hotel management, tourism development, and other services. It was founded in 1979, headquartered in Ningbo, China.
There is typically 1 dividend per year in June. 5 Year Average Dividend Yield: 5,01%
