With the drama unfolding in China and with Evergrande likely near defaulting, China's real-estate stocks in the West are also plummeting.
The Chinese property giant said in a filing with the Hong Kong stock exchange it expects a "significant" continued decline in sales this month. Evergrande also warned its escalating troubles could also lead to broader default risks. That essentially means Western investors are losing faith in the sketchy Chinese real-estate market where the three red line rule will likely topple quite a few real-estate firms there in the next 18 months.
The company blamed "ongoing negative media reports" for dampening investor confidence, resulting in a further decline in sales in September – usually a strong month for sales in China.
This is a researched list of Chinese Real-estate stocks on NYSE or NASDAQ, you have to do your own due diligence to see if there are any good picks here.
- $XIN - down 34% in the past 6 months
- Evergrande is down 80% in Hong Kong in the past 6 months. Definition of a falling knife.
- $HGSH - down 22% in the past 6 months
- $DUO - down 81% in the past 6 months - now $1.39 (Some call this the Zillow of China)
- $MDJH - down up 11% in the past 6 months (low volume)
- $QK - down 77% in the past 6 months (12 dollars in March, 2020 to $0.68 now, they are not profitable with a staggering earnings miss in 2020)
- $BEKE - down 68% in the past 6 months - a housing platform related to real-estate. It's HQ is in Beijing, so less risky. $75 in November, 2020 now it is $19.
- $NTP - up significantly
Remember that this is a bear market for Penny stocks and investor confidence is greatly shaken in China. Add that to the real-estate Evergrande situation and you have massive liquidity coming out of this sector.
To invest in Chinese stocks seems uncertain, but a lot of the regulation and news is very dramatic. However China remains an incredible growth story in the years ahead and decades from now.
One of the best players for the end of 2021 continues to be Chinese Stocks. However you have to try to time the bottom of the bear market for penny stocks which may not even occur until the stock market corrects significantly and liquidity leaves the Fed stimulated equity levels that are significantly overvalued at or near record highs.
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