China’s big housebuilders tipped for growth

The twin forces of urbanisation and industry consolidation have made China’s large property developers increasingly attractive to bond investors. Data shared by asset manager Pimco indicates that the top ten property developers in China raised their market share from about 5% to nearly 25% between 2006 and 2017. “We believe the key investment opportunities for bond investors lie with larger developers that can benefit from sector consolidation, while at the same time demonstrating an improving credit profile,” said Frank Chen, credit research analyst at Pimco. Real estate is taking up a larger share of the Chinese economy as citizens flock to the cities and house prices rise. Pimco estimates China’s property market to be worth $22 trillion, which is 1.8 times the nation’s GDP in 2017. “Despite long-running international concerns about China’s property ‘bubble’, the market has proven quite resilient,” said Chen. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.