China real estate: riding the cycle

China's real estate sector is all-important. In this report, we look back on 2017, assess the outlook and opportunities in 2018.

25 Feb 2018

After an extensive round of visits with Chinese real estate developers, we're thinking about prospects for China's real estate sector in the Year of the Dog.

After a longer than usual debate with our credit analysts and portfolio managers at our recent investment meeting, three issues were top of mind:

Will China's real estate sector support the economy in 2018? Will developers start piling up inventory again, and why is the real estate cycle longer this time round?

Our rounds of meetings with real estate developer CEOs and CFOs in China yielded some fascinating insights, and we have built them into our outlook for China's real estate sector, economy, and bond markets in 2018.

Canada Asset Management

Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report was compiled, and any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Commentary is provided at a macro level and is not with reference to any investment strategy, product or fund offered by UBS Asset Management and is provided in Canada generally pursuant to the registration exemption provided for in Section 8.25(2) of National Instrument 31-103 and in Ontario pursuant to Section 34 of the Securities Act (Ontario) and does not purport to be tailored to the needs of the person or company receiving the advice.. The information contained in the materials should not be considered a recommendation to purchase or sell any particular security. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

Please confirm you are a Canada resident to proceed.

Please select at least 1 checkbox