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    1638   KYG521321003


End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 01/25
0.94 HKD   -2.08%
01/24Funds see promise in battered Chinese real estate dollar bonds
01/23Local Chinese Government Orders Audit of Kaisa Assets
01/21Chinese developer Shimao sells unit in a bid to reduce debt
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Even in tech hub Shenzhen, China's property market succumbs to chills

11/28/2021 | 07:06pm EST
Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong

SHENZHEN, China (Reuters) - Life used to be good for Jerry Tang, who left his rural hometown in 2014 to become a real estate agent in Shenzhen - China's tech megacity and one of the world's hottest property markets.

Just a few years ago Tang could make up to 50,000 yuan ($7,800) in a good month selling apartments. Last year, he was making around 15,000 yuan a month, but this year that's fallen to about 5,000 yuan and mostly comes from commission on rentals.

"It's definitely much harder to sell this year," he said. "Buyers are waiting to see what happens with the market, while developers are cash-strapped, they are taking time to pay commission to agents."

In Shenzhen - home to 17.6 million people and firms like gaming powerhouse Tencent Holdings Ltd and telecommunications giant Huawei Technologies - some smaller realtor offices have closed. Eight real estate agents Reuters spoke with also say at least a third of their colleagues have either left the industry or are thinking about it.

Lianjia, a major realtor, plans to shut down a fifth, or about a hundred, of its offices in Shenzhen, financial news service Caixin reported in September, citing an internal memo. Lianjia and its parent company KE Holdings did not respond to requests for comment.

The lack of turnover in Shenzhen's property market and the fallout on the city's real estate brokers stems in part from deliberate policy efforts over the past year by local authorities to make apartment prices more affordable, including requiring higher down payments for second homes and capping resale prices.

But real estate agents say it also due to the current crisis of confidence hitting China's property industry, highlighting just how extensively the sector's woes are reverberating. If Shenzhen - emblematic of China's meteoric economic rise over the past 40 years - is not immune, then few places in the country are.

China's property market, which accounts for a quarter of GDP by some metrics, has been suffering unprecedented stress after policymakers this year introduced debt caps to rein in excessive borrowing by developers.

That in turn has helped lead to liquidity crises at developers such as China Evergrande Group, the world's most indebted developer, and Kaisa Group Holdings. Both of them also happen to be headquartered in Shenzhen. Policymakers are, however, widely expected to stand firm on the new rules which are perceived as necessary reform.

Prices for new homes in Shenzhen fell 0.2% in October from a month earlier - their first drop this year - and in line with the national average. It remains to be seen, however, if Shenzhen's property prices will suffer the more sustained, albeit still small declines that have hit some second-tier Chinese cities this year.

In its favour, the southern tech hub's economy is not much smaller than that of fellow megacity Shanghai's but Shenzhen has only a third of the land, ensuring strong underlying demand for apartments.

"Buyers are concerned about Evergrande and contagion, but in Shenzhen they know other developers would step in to finish projects if they had to," Tang said.

For some, the tougher curbs and subsequent property market chills are a sign that speculative buying - often rampant in China as traditionally there have been few other investment options - could become a thing of the past.

"My parents' generation could close their eyes and point somewhere to invest their money and get a great return - they could gamble," said Lisa Li, who works in the investment industry and recently bought a small studio apartment but found the process nerve-wracking.

"Our generation can't do that, we'd be in trouble," she said.

That's cold comfort, however, for Tang, 30, who says he is thinking of changing jobs.

"I need savings if I'm to find a girlfriend, and I'm supporting my mum back home."

($1 = 6.3836 Chinese yuan)

(Reporting by David Kirton; Additional reporting by Clare Jim in Hong Kong and Liangping Gao in Beijing; Editing by Ryan Woo and Edwina Gibbs)

By David Kirton

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CHINA EVERGRANDE GROUP -6.45% 1.74 End-of-day quote.9.43%
KAISA GROUP HOLDINGS LTD. -2.08% 0.94 End-of-day quote.20.51%
01/24Funds see promise in battered Chinese real estate dollar bonds
01/23Local Chinese Government Orders Audit of Kaisa Assets
01/21Chinese developer Shimao sells unit in a bid to reduce debt
01/20Evergrande bondholder advisor says property firm has made contact
01/20China property shares, bonds rally on hopes govt measures will aid liquidity
01/19Chinese property developers face big debt maturities in 2022
01/12Kaisa, Shimao, Greenland Named Among Delinquent Property Developers
01/12Nam Tai Property Shareholders IAT Insurance, IsZo Capital Agree to Fund $20 Million Deb..
01/12Hong Kong's Hang Seng rises most in three months on tech boost
01/12China shares rise as cooler inflation opens door to policy easing
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Analyst Recommendations on KAISA GROUP HOLDINGS LTD.
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Sales 2021 70 107 M 11 083 M 11 083 M
Net income 2021 6 484 M 1 025 M 1 025 M
Net Debt 2021 - - -
P/E ratio 2021 1,02x
Yield 2021 13,6%
Capitalization 6 595 M 847 M 1 042 M
Capi. / Sales 2021 0,09x
Capi. / Sales 2022 0,08x
Nbr of Employees 16 500
Free-Float 60,8%
Duration : Period :
Kaisa Group Holdings Ltd. Technical Analysis Chart | 1638 | KYG521321003 | MarketScreener
Technical analysis trends KAISA GROUP HOLDINGS LTD.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 5
Last Close Price 0,94 CNY
Average target price 2,20 CNY
Spread / Average Target 134%
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Managers and Directors
Fan Mai Vice Chairman, CEO & Co-Chief Risk Officer
Hao Weng Co-President
Hai Ming Li Co-President, COO & Executive Director
Hiu Kwan Kwok Co-President & Executive Director
Jian Xin Wu Co-Chief Financial Officer & Senior Vice President