The Asian Crisis

[Aman A.K.A. Ahamburger]

You know things are getting bad when people are getting excited about a contraction in manufacturing.

Is the Party Over? China Property Developers Feeling Squeeze

Investors are forcing Chinese property companies to pay more to borrow and driving some to the country’s “shadow-banking” system, as warnings over the health of the real-estate market grow more dire. On Wednesday, Moody’s Investors Service dealt the latest blow, lowering its outlook for the sector to negative from stable. As the WSJ’s Fiona Law and Daniel Inman report:

By volume, residential-property sales in the first four months of 2014 were down 9.9% from a year earlier, and the pace of price increases has slowed for the past four months.

Even the biggest developers are getting hit. Evergrande Real Estate Group, China’s second-largest developer by revenue, had little trouble borrowing $3.45 billion at relatively low interest rates in the offshore bond market over the past four years. But this year it has borrowed heavily in the shadow-banking system, where Standard Chartered estimates the cost of funding on trust products is 10% to 12%.

[Aman A.K.A. Ahamburger]

Wait, you mean govt interference in business doesn't work.. Hmm..

Real-estate tycoon lashes out at China government

[Aman A.K.A. Ahamburger]

Add another name to the list of China's top real estate pros that is saying things are essentially screwed in the Chinese market.

Real Estate Tycoon Sees Titanic Moment for China’s Housing Market

China’s once buoyant property market is facing some rough sailing. In fact, according to one tycoon – Soho China Ltd’s chief Pan Shiyi — the real estate market is looking more like the Titanic headed in the direction of an iceberg.

Mr. Pan, the co-founder and chairman of Soho China Ltd., is taking a very bearish view on the housing market, which has struggled this year. In the first four months of the year, home sales were down 9.9% from the same period a year ago in value terms, official data shows. New construction starts — as calculated by area — were down almost 25% year over year in the same period.

As if that’s not bad enough, demand is also weakening in an expanding number of cities as banks tighten mortgage lending and sales are dampened by widespread expectations of price cuts.

“I think China’s property market is like the Titanic and it will soon hit an iceberg in front of it,” Mr. Pan told a financial forum on Friday, according to the China Business News.

“After hitting the iceberg, the risks will not only be in the real estate sector. The bigger risk will be in the financial sector,” he added.

He said serious problems lie with financial products like trust and wealth management products, as well as entrusted loans that charge higher interest rates than banks and are key financing vehicles for the property sector.

“When housing prices fall 20% to 30%, these problems will be all exposed,” he was quoted as saying.

[Aman A.K.A. Ahamburger]

-China's real-estate slump worsens
-China’s ‘Golden Era’ for Property Over, Vanke President Says
-China Banks Bad-Debt Ratio Seen Rising to Most Since 2009
-Sands China Falls After Investor Moves Stake to Parent Company

[Aman A.K.A. Ahamburger]

Some very interesting numbers and some things to think about regarding investment.

KYLE BASS: China Isn't Just Slowing Down — It's Contracting

China’s economy isn’t just slowing down, according to Bass: It’ contracting. While China’s published rates for annual growth are still positive, Bass said the nation’s economic growth was negative from the fourth quarter of 2013 to the first quarter of 2014.

That is a result of excessive government spending on unproductive sectors of the economy. Bass said the People’s Bank of China (PBoC) has been more aggressive in its quantitative easing (QE) that the Federal Reserve has, but much of that money has gone into unproductive credit expansion.

China’s banking assets have grown to over 100% of its GDP in the last three years, according to Bass. If the U.S. had engaged in similar policies – which he said would translate to $17 trillion in lending over that time period – it, too, would have achieved more than 7% GDP growth.

China’s banking assets now total approximately $25 trillion, or almost three times the size of its $9 trillion economy. Its low default rate on bank loans – about 1% – is about to rise, according to Bass. Much of that lending is construction-related. Bass said that 55% of China’s GDP growth has been in the construction sector. The marginal return on those loans must be very small, he argued.

“A rolling loan gathers no loss,” Bass said, “and that’s what’s been going on in China for the last few years.” He said it is impossible to believe China could “manipulate” the inputs of its financial system without losing control of the outcomes.

Deflation is also threatening China. Bass said that its GDP deflator is now below zero. He expects the PBoC to engineer a devaluation of the renminbi as a way to stimulate exports and avert further deflation.

Bass said that if non-performing loans go from 1% to historical norms “somewhere in the teens” with loss severities of 100% for the worst loans, then China would delete its $4 trillion of foreign exchange reserves. Bass implied that China would need those reserves to stabilize its banking system, though he did not say so.

China’s leaders are fully aware of the dangers its economy faces, Bass said, and they hope to slow growth in a measured fashion, including through the restructuring of its banking system. “The jury’s out whether or not they can do it,” he said. “We actually believe they might be able to do that and that GDP [growth] is just going to slow down a lot more than people expect.”

“I’m not saying it is a calamity, a disaster or it’s going to end badly for the world,” Bass said. “All I’m saying is China is slowing down a lot faster than people think, and you need to think about how to position your portfolio for this.”

Investing for a China Crisis

[Aman A.K.A. Ahamburger]

China can lower reserve requirements all they want. What they can't do is reverse the damage they have done with their ghost cities/malls and massive debt inside their finicial system. In fact, lowering reserve requirements means that banks will have less money to deal with a finicial crisis.

Bust may be looming over China property market

[Aman A.K.A. Ahamburger]

Here is a great little equation..

China’s Property Developers Face Record Wave of Maturing Debt

The amount of dollar-denominated bonds that must be repaid in 2015 will jump to $2.83 billion, the most in data compiled by Bloomberg going back to 1993. Most Chinese builders listed on the mainland or in Hong Kong are behind fiscal-year sales targets and achieved less than 33 percent of their target in the first four months, analysis based on Bloomberg data show.

[Aman A.K.A. Ahamburger]

And land sales are following housing sales. The bullish trends just keep building for the global economy.

[Aman A.K.A. Ahamburger]

Insanity: doing the same thing over and over again and expecting different results.

-Albert Einstein



China’s No-Money-Down Housing Echoes U.S. Subprime Lending Risks

[Aman A.K.A. Ahamburger]

And housing prices are following sales.

[Aman A.K.A. Ahamburger]

And the economy is following housing.

China Housing Slump Hits More Than Houses

China's housing slump is affecting other parts of the world's No. 2 economy, hitting everything from construction-worker wages to furniture demand to sales at Yang Limin's steelyard in this dusty northern Chinese town.

This is typically the time of year when construction companies are at their busiest, said Mr. Yang, manager at Ningxia Yanbao Steel Market Co. But the firm sold only 100,000 tons of steel this year, he said, down 30% from the same period a year ago. In several steel trading offices down the street, several employees appeared to be dozing at their desks.

"It's already June, and things haven't improved," Mr. Yang said. "And next year doesn't look so good either.".....

....Property sales account for 12% of China's GDP, Citigroup estimates. But Moody's Analytics argues that the figure is 23% if construction and house renovation are included.

Indeed, the housing slowdown is being felt beyond the property market, economists said. Growth in spending in construction and renovation, which includes interior decoration, slowed to 14.2% in the first five months of this year, according to official data, compared with 22.1% growth for all of 2013.

Sales of furniture increased 14.7% and household appliances grew 7.3% during the first five months of 2014 compared with a year earlier. During the same period last year, furniture sales were up 21% and household appliance sales were up 21.5%, according to the National Bureau of Statistics....

....The story was largely the same at a nearby wholesale market selling marble and ceramic tiles.

"The boss told us two days ago to focus on shedding inventory," said a sales manager, who gave only her family name of Pei. Sales since May have fallen off a cliff, she said, leaving the company with 10 million yuan ($1.6 million) worth of unsold tiles collecting dust in a warehouse.

Even though customers are driving harder bargains these days, Ms. Pei said, the company has had only four orders in the past four days, compared with eight orders a day in better times. "Right now we can't care too much about margins," Ms. Pei said.

Also feeling the pinch are migrant workers, who often travel from inland villages to China's glittering east coast cities to build skyscrapers and industrial parks. According to a 2013 survey by the statistics bureau, one in five migrant workers in China, some 59.7 million people, work in the construction industry.

"With the property market suffering, we have more 'resting' time this year," said Li Guiquan, a 54-year old construction worker at the Shanghai Railway Station. Mr. Li normally earns 300 yuan a day fixing water pipes. But he hasn't worked since February, he said, forcing him to get by on a 1,000-yuan monthly stipend from his employer and reduce the support he gives his family back in southwestern Guizhou province.

[Aman A.K.A. Ahamburger]

An interesting story that outlines just how hollowed out China's finicial system is.

ITIC Resources says metal missing from China's Qingdao port

[Aman A.K.A. Ahamburger]

It might sound crazy, but a Chinese property bust will do more to push the democratic movement forward than any social movement ever has...

China property sales fall in June, smaller cities hit hardest

[Aman A.K.A. Ahamburger]

Now that the economy is getting worse, Shanghai Developer Said to Halt Project on Funding Shortage.

The viscous cycle is sending the slow motion plane crash into a nose dive. Stay .

China’s Manhattan Project Marred by Ghost Buildings

[Aman A.K.A. Ahamburger]

Something that hasn't been touched on much in this thread since the first page is the second front that is opening up for China. While they are being drawn into the Mid East via Central Asia, they are also trying to assert their authority over the Asian region. All this while trying to subdue their people's freedom and unwind the biggest real estate bubble in human history. The craziest part, while all this is going on people continue to spew doom and gloom about things they were wrong about.

-China's New Map Roils Diplomatic Waters in the Region
-Xi calls for China frontier defense
-Protesters-disrupt China Envoys Taiwan Trip

[Aman A.K.A. Ahamburger]

Further confirmation that the Chinese people have lost confidence in the housing market. Which is the most dangerous aspect to the economic cycle there is.

China Housing Prices Fall

China's housing prices fell in June for the second straight month, as property developers cut prices to stoke sales amid a housing-supply glut in many cities.

Many home buyers have stayed on the sidelines in anticipation of further price cuts, while cases of default among smaller developers rise as companies struggle to repay debt in a souring property market.

Average new-home prices fell 0.5% in June from May, data provider China Real Estate Index System said Monday. Average new-home prices 0.3% in May from April, the first month-to-month decline since June 2012.

Out of the 100 cities surveyed, 71 showed a decline in home prices, up from 62 in May.

...

Some of China's wealthiest cities are also showing signs of strain. In Beijing, average new home prices fell 0.6% in June from May, a turnaround from a 0.7% gain in May from April. In the affluent southern city of Shenzhen, prices declined by 1.8%, extending a 0.9% fall in May, the survey said. In Shanghai, prices rose 0.3%, a turnaround from a fall of 0.4% recorded in May.

"Many home buyers don't have the confidence for buying homes now, as prices are falling," said Yang Zhuguang, a sales person at an empty, mid-end property development in Hangzhou, the capital city of China's eastern Zhejiang province. The showroom was decorated with flags of countries participating in the World Cup, but the mood was anything but festive.

Hong Kong’s China debt trap

[Aman A.K.A. Ahamburger]

There is a great article in the FT right now, a clip...

End to China’s property boom has barely begun

The Chinese property sector is in a recession. Market optimists insist it is going through an “adjustment” similar to previous property downturns.

A more sober view, however, is that because of unprecedented overbuilding, and leverage nurtured by the eruption of shadow banking, this downturn is both more serious and systemic. China is probably in the first stage of a denouement of the property- and construction investment-led growth model of the past 15 years. Financial markets are having trouble pricing the implications.

I always enjoy reading the comments on the articles. A poster by the name of, Qui Li literally had me laughing out loud. His theory is that the biggest property bubble in the history of mankind is no big deal because China is state owned.

As I've posted before, this is actually the definition of a black hole. I mean, the CPC is bankrupt and since the state is the one with all the debt, there is no one to bail the state owned banks out. The author of the article is spot on, the end to China’s property boom has barely begun. Stay

[Aman A.K.A. Ahamburger]

Chinese democracy: Britain’s big banks echo China on Hong Kong’s democracy movement

And what will bring it on: China's Fake GDP Is Over-Inflated By 25%

[Aman A.K.A. Ahamburger]

This guy is right on the money, IMO.

China Rallying for All Wrong Reasons to Top-Rated Analyst

The more China does to boost economic growth, the more bearish David Cui gets on the nation’s stock market.

The Bank of America Corp. (BAC) strategist, ranked No. 1 by Institutional Investor magazine, says the state spending and monetary stimulus that drove a 14 percent rally in the Hang Seng China Enterprises Index (HSCEI) from this year’s low in March are only making equities less appealing as leverage rises and free cash flow dwindles....

.....Cui’s pessimistic outlook for the largest emerging market puts him at odds with bulls at some of the biggest banks and money-management firms, including Goldman Sachs Group Inc. and BlackRock Inc. He says policy makers’ unwillingness to endure the “short-term pain” of slower growth, needed to cut debt and shift the economy toward a consumption-based model, will prevent a sustainable rally.

“Given that growth is still being driven by the usual factors, it means the core issue is getting worse as people are building up debt,” Cui said in a phone interview on July 14. “The issue is whether this growth is good quality and sustainable. My belief is that it’s not.”...

Data yesterday showed China’s economic growth accelerated for the first time in three quarters in the April-June period. Premier Li Keqiang’s government has brought forward railway spending, cut some banks’ reserve requirements and reduced taxes to protect an annual growth goal of about 7.5 percent that’s under threat from a weakening real estate market. The country’s broadest measure of new credit last month was the highest for June since the lending spree of 2009, when policy makers acted to shield the economy from the global crisis.

So in other words, to eek out .1% more GDP they had to expand credit to historic levels... Natural growth without a doubt..

Economists are really worried about China's massive property sector

[Aman A.K.A. Ahamburger]

Even with the record amount of credit growth China Home Prices Fall in Record Number of Cities. Hard to imagine any amount of stimulus is going to help at this point as China faces second bond default amid world’s biggest debt overload and China Rate Swap Jumps as Bond Sales Pulled Amid Default Risk

This is literally the exact spot the overbuilt US market was in before you know what happened. Stay

[Aman A.K.A. Ahamburger]

Here are a couple solid plans...

Capital Squeeze Forces China Brokers to IPOs Amid Slump

‘Survival Crisis’

“Traditional brokerages are facing a survival crisis,” Zhao Xianghuai, a Shanghai-based analyst at Guotai Junan, wrote in a May 19 note. “China’s securities industry is now in a ‘big market, small industry’ situation: Its business model and asset size do not match the future growth prospects for the capital market.”

Since 2012, China’s securities regulator has eased the rules for quasi-lending businesses such as margin finance and letting clients borrow securities, giving brokerages access to a fast-growing market.

Securities lending and margin finance on the Shanghai and Shenzhen stock exchanges, China’s two main bourses, jumped almost fourfold to 347 billion yuan last year with 84 brokerages approved to engage in the businesses, according to data from the People’s Bank of China. Those operations may account for about one-fifth of the industry’s revenue in 2014, up from 14 percent last year, Liu Jun, an analyst at Changjiang Securities Co. in Wuhan, wrote in a May 5 note.
Even so, the firms are hobbled by the tighter capital requirements in place since a wave of bankruptcies rocked China’s brokerages from 2002 to 2006, according to Richard Xu, a Hong Kong-based analyst at Morgan Stanley.

‘Competitive Disadvantage’

China’s “securities firms are at a competitive disadvantage in this business,” Xu wrote in an April 15 note. “Very complicated and strict capital requirements mean limited room for leverage at China securities firms.”
Regulators shut 19 firms from 2004 to 2006, while others collapsed or were sold to overseas investors following years of industrywide losses, embezzlement and corruption.

As part of that overhaul, Goldman Sachs Group Inc. and UBS AG were allowed to acquire assets and securities licenses from ailing brokerages, making them among the first foreign investment banks to gain a foothold in China. They remain the only overseas firms whose joint ventures have a license for brokerage and trading activities in the domestic market, while other Wall Street companies are restricted to underwriting.
Stringent requirements imposed since then on debt ratios and capital levels, combined with the slump in trading commissions, have eroded the profitability of Chinese brokerages. Return on equity dropped to 5.8 percent last year from 46.3 percent in 2007, according to data from Tebon Securities Co. That compares with an average ROE of 19.5 percent last year for 15 publicly traded Chinese lenders.

China's First Mortgage Debt Since Crisis Shows Li Concern

Premier Li Keqiang is seeking to avert a collapse of the real-estate market.....

[Aman A.K.A. Ahamburger]

Sound familiar

Zero-interest loans highlight China property risks

[Aman A.K.A. Ahamburger]

The black hole has emerged! To avoid default the govt had to step in. This article sums it up nicely...

China's Detour on Highway to Default

Two immediate worries spring to mind. One, China's moral-hazard bubble continues to swell as public officials insulate companies from the effects of bad business decisions. For all the talk of epochal reform in China, there's still no price to pay for questionable borrowing and lending. Two, local government debt is growing even as Communist Party leaders pledge to reduce public liabilities.

A key pillar of President Xi Jinping's plan to avoid a Japan-like bad-loan crash is reining in credit and the opaque shadow-banking industry. The effort includes dissuading local governments from risking their own defaults should growth markedly undershoot Beijing's 7.5 percent target. But as Bloomberg News reported on July 15, more and more regional governments are upping stimulus efforts to help Beijing meet that goal. Northern Hebei province alone is pumping a fresh $193 billion into areas including railways, energy and housing.

A more recent Bloomberg analysis shows that as of July 23, 20 of 25 provinces and provincial-level cities reported a pickup in growth in the first half of the year. Some of the gain, of course, is the result of central-government stimulus: expedited railway spending and tax cuts. Most of it reflects local fiscal pump-priming, funded by untold billions of dollars of fresh debt.

The People's Bank of China has also eased curbs on bank lending and distanced itself from a November projection that the economy might experience an unwinding of debt. Credit outstanding rose to 206 percent of gross domestic product last quarter from 202 percent in January-to-March. Beijing's talk of downshifting to a "new normal" to rebalance the economy toward services is belied by July's surge in manufacturing to an 18-month high.

The big worry is that we just don't know how bad China's debt profile really is. As of June 2013, local government debt had swelled to about $3 trillion. Given efforts since then to meet growth targets, it's a pretty safe assumption that the figure is now considerably higher -- and poised to rise further.

[Aman A.K.A. Ahamburger]

Whoo-hoo, the Chinese manufacturing gauge hit the highest its been since 2012, a blistering 51.7! After five years of a slow and steady US recovery and stimulus from the Chinese central bank this is not something to get excited about. Especially since China average housing prices fall for third month

[Aman A.K.A. Ahamburger]

How big is China's debt problem? So big that the central govt has admitted to it. Is this their way of saying there is no sense of bailing out the real estate market until it falls apart? It would make more sense than throwing money in a black hole, especially when that money is needed to make much needed reforms to the service economy.

China Central Bank Signals No Broad Monetary Easing

The People’s Bank of China warned that the country’s credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.

“The total debt level has been rising relatively quickly,” the PBOC said in its second-quarter monetary policy report on Aug. 1. “Our existing money supply and credit are already relatively large and their growth is also high.”......

....Expansion in China’s economy-wide credit has exceeded nominal gross domestic product growth in every quarter since 2008, according to data compiled by Bloomberg. Financing rose 16.6 percent in June from a year earlier, compared with the second quarter’s 8.5 percent increase in GDP unadjusted for inflation.

Outstanding credit rose to 206.3 percent of GDP last quarter from 202.1 percent in January-to-March, according to data compiled by Bloomberg.

China’s stock of aggregate financing, its broadest measure of credit, rose by 73 percent of GDP in the past five years, the IMF said in its report last week. Out of 43 countries studied by the the lender over 50 years, only four saw credit expansion on a similar scale to China and all four had a banking crisis within three years following the boom, it said.

[Aman A.K.A. Ahamburger]

Ah yes, reality..

Asia's Next Crisis Is a Flood of Debt

Asia is still traumatized by the great financial crisis of 1997, when Thailand's devaluation of the baht set off a region-wide collapse in markets. Could it happen here again?....

....Thailand has plenty of company in Asia, Oxford Economics warns in a new report. Financially conservative Singapore has seen credit growth in the last six years exceed that of the U.S. in the run-up to its 2008 subprime meltdown. Several nations now have private-debt ratios of between 150 percent and 200 percent of gross domestic product. They include the higher-income set -- Australia, Hong Kong, South Korea and Taiwan -- as well as China, Malaysia, Thailand and Vietnam. Even where debt levels are lower, Indonesia and the Philippines, the trajectory is troublesome.

"Debt surges of this kind often end badly," says Oxford economist Adam Slater.

Even more worrisome than the absolute levels of debt, says Frederic Neumann, Hong Kong-based co-head of Asian economic research at HSBC Holdings Plc, is the pace of increase. For all its rapid growth and buoyant markets, Asia isn't as healthy as it appears on the surface, and might take on even more debt to support growth. As leverage exceeds the peak before the 1997 crash, is a sharp correction on the way?

[Aman A.K.A. Ahamburger]

The tidal wave approaches... Stay .

China Default Storm Seen as Record Private Bonds Mature

Privately issued notes totaling 6.2 billion yuan ($1 billion) come due next quarter, the most since authorities first allowed such offerings from small- to medium-sized borrowers in 2012, according to China Merchants Securities Co....

......Premier Li Keqiang has sought to expand financing for small companies, which account for 70 percent of China’s economy,....

....The number of Chinese firms whose liabilities are double their equity has surged since the global financial crisis, suggesting more defaults may come, data compiled by Bloomberg show. Publicly traded non-financial corporates with debt-to-equity ratios exceeding 200 percent have jumped 68 percent since 2007......

.....Tianjin Tianlian Binhai Composite Materials Co., which makes polymeric composite materials, couldn’t pay back principal and interest on its notes when investors exercised their option to sell back the securities July 28, Caixin Online reported July 31, without saying where it got the information. Tianjin Tianlian’s 50 million yuan of bonds are due on Jan. 29, 2015, according to China International Capital Corp. Three calls to the manufacturer went unanswered.

Huzhou Jintai Science and Technology Co. failed to repay the principal and interest on 30 million yuan of its debentures when investors tried to sell them back on July 10, according to a CICC report released on July 25. The report said Zheshang Securities Co., the notes’ lead underwriter, informed the Shanghai Stock Exchange on July 18. Two calls to Huzhou Jintai went unanswered.

A local court accepted an application for bankruptcy by Zhejiang Walters Polymer Technology Co. on March 12, according to a statement on Anji County People’s Court’s website. Investors could sell back 60 million yuan of the company’s bonds on July 23, according to CICC. An official who wouldn’t disclose her name declined to comment on the repayment status yesterday.

[Aman A.K.A. Ahamburger]

As companies run out of cash, one of the biggest funding sources for the govt dries up. While they did sell the land at a discount, the true nature of the problem rears its ugly head.



-Real Estate Oversupply Becoming Bigger Problem For China
-Household confidence drops as people are reluctant to buy homes

[Aman A.K.A. Ahamburger]

Speaking of that black hole...

China Loosens Monetary Conditions in Test of Credit Power

Each $1 in new credit added the equivalent of an extra 20 cents in GDP in the first half of 2014, according to data compiled by Bloomberg. That compares with 29 cents in full-year 2012 and 2013 and 83 cents in 2007, when global money markets began to freeze.

[Aman A.K.A. Ahamburger]

Why is it so bad that $1 only creates 20 cents in GDP? Because China and some investors are buying the idea that China has a way out of this mess. In reality...

China’s Subprime Moment Arrives

Looking at historical crises like Japan in 1990, the United States in 1929 and 2008, as well as Spain in 2008, he found out that growth in private debt of more than 18 percent over a five-year period will lead to a financial crisis. In China, private debt, which includes mortgages, has grown 56 percent from 2007 to 2012.

In China, Beginnings Of A Foreclosure Crisis?

This is definitely not a good sign.

Foreclosures are starting to be reported in China, home to the most talked about housing market on earth. According to the 21st Century Business Herald, three cities have reported increases in the number of bank repos of Chinese properties. Has a foreclosure crisis begun in China? If so, the China housing bears would have been vindicated.

Shang Fulin, chairman of the China Banking Regulatory Commission, was quoted saying there were defaults by both developers and homeowners in three cities — Hangzhou, Ningde and Xinqi. Fulin added that medium- and small-sized developers were facing capital crunches due to unsold properties. The biggest risk to a popping real estate bubble is in the third and fourth-tier cities, and not the major cities on the east coast like Shanghai and Beijing, where housing supply remains tight.

Property Defaults Seen as Financing Stresses Mount: China Credit

Moody’s maintains a negative view on the industry even after some cities softened property curbs.

“The relaxing of restrictions has limited immediate impact,” Moody’s Leung said. It’s “confined to lower-tier cities. Investment demand there remains weak. Some cities’ inventory levels are still high.”

The cooling has also been felt among China’s larger developers.

Greenland Hong Kong Holdings Ltd. (337) said July 10 it may have a “material decline” in its consolidated income for the first half. The builder is a unit of state-owned Greenland Holding Group Co., the Shanghai city government-owned builder of one of China’s tallest towers.

China Overseas Grand Oceans Group Ltd. (81), a property development and sales company, said on July 11 that it may report a decline in net profit for the same period.