GrahamI'm tied up with end of financial year (Japanese company)...

Graham

I'm tied up with end of financial year (Japanese company) so will be brief.

1. My comments do not relate to a Chinese stock market crash
2. China has key issues with shadow banking sector, excess lending and an over extended property market.
3. Zhejiang Xingrun Properties failed to meet a bond payment last week and face foreclosure. Chinese Government will no longer bail out non government enterprises.
4. Zhejiang Xingrun Properties had significant exposure to the Zhejiang Province property market as do Snow Peak Group.
5. Zhejiang Province is one of the worst performing property markets in China
6. Much of Snow Peak's growth has been via acquistion not organic so I would assume it is carrying substantial amounts of debt.
7. Li Kashing, Hong Kong’s top developer and Asia’s richest man, has been selling his property holdings in China.

The failure of Zhejiang Xingrun Properties was given its greatest media exposure around the 19 - 20th of March. Check the CSD chart from the 17th March. Is there a correlation between CSD SP and Zhejiang Xingrun Properties demise??

The point I am making is that there are many factors which will drive investor sentiment and SP and we should not think that CSD can operate inside a bubble and that we should not hang off everyword from CSD management or spruikers.

I'll address Early1's earlier questions re: pricing, 9.85% FCI etc when i get a chance.

In the meantime couple of interesting articles below.


http://blogs.ft.com/beyond-brics/2014/03/25/default-risks-surge-at-china-steel-mills-survey/

http://online.wsj.com/news/articles/SB10001424052702303725404579460971319858820?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303725404579460971319858820.html