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LONDON : The worst of China’s property crisis is not yet over, a survey of Chinese and international investors carried out by JPMorgan has shown.
China’s property woes have continued to mount in recent weeks as major developers like Country Garden and state-backed Sino Ocean have teetered close to an Evergrande-style default.
“Unsurprisingly, most investors are bearish,” JPMorgan’s analysts said in a summary of the survey published on Friday.
It was the first time the investment bank had conducted the survey. It showed 55 per cent of those who took part believed the market was “still at the trough” of its crisis, with only 26 per cent of respondents of the view that the worst is now past.
There was no major discrepancy between Chinese and international investors’ views, they added.
Around 60 per cent of respondents expected firms’ share prices to rise over the next three months, although only 16 per cent said they were more likely to increase their positioning.
“Ineffective policy responses” meanwhile was viewed as the biggest concern, followed by a spillover into the banking system, a double dip in property sales, and a significant slump in home prices.
Respondents are still unconvinced that recent support measures will be enough to steady the situation. Just over 40 per cent had a “neutral view” on whether these easing measures will boost property sales over the next 3-6 months.
Going forward, only 17 per cent expect Beijing to provide very strong stimulus, while the majority, or 65 per cent, expect regional or local governments to gradually increase support.
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