Morgan Stanley upgrades China property to ‘attractive’ – says default risk largely priced

  • upgrade China’s property sector to “attractive”
  • “We believe the default risks and property market weakness have been largely priced into property stocks”
  • “Property stocks will react on policy easing, which looks more likely now” 
  •  “adjustment process” of reducing debt and policies to “manage system excesses” will likely continue for the next six to 12 months. “However, property stocks are pricing in part of these risks, and we think systemic risk is manageable” 

I posted earlier on Stan Chart not seeing Evergradne as a systemic evetnt:

WSJ on the housing hesitancy in China in the wake of worries over China property developers:

Evergrande slow-motion default appears to be continuing – there is little indication out of the firm they’ll be paying bondholders what is due:

Equity analysts at MS in a note, info comes via CNBC, link here. 

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