Investors Losing Confidence in China Property Sector: Bocom

The transcript discusses the potential macroeconomic implications of the Evergrande crisis, highlighting the loss of confidence in the offshore bond market and the challenges faced by developers in refinancing. It explores the deadlock in the sector, the market's pricing of worst-case scenarios, and the uncertainty surrounding government intervention. The conversation also covers Evergrande's strategy of offering discounted properties, its impact on the broader housing market, and concerns about other developers' financial health. Finally, it touches on policy expectations and the outlook for property stocks.

What is one of the main reasons for the loss of confidence among investors in the offshore bond market?

• Loss of refinancing capabilities

• Increase in property prices

• High demand for land

• Government intervention

What is the market's current approach to the potential bankruptcies in the sector?

• Focusing on short-term gains

• Expecting government bailouts

• Pricing in worst-case scenarios

• Ignoring the risks

How is Evergrande attempting to manage its financial situation?

• Increasing property prices

• Reducing construction projects

• Expanding into new markets

• Offering properties at discounted rates

What is a potential consequence of Evergrande's strategy on the housing market?

• Immediate government intervention

• Spillover effects on other developers

• Stabilization of property prices

• Increased buyer confidence

What is a major concern for developers with off-balance-sheet debts?

• Hidden financial risks

• Excessive government regulation

• High interest rates

• Lack of market demand

When is the government expected to potentially loosen policies affecting the property market?

• By the end of the year

• In the next few weeks

• Immediately

• In the next five years

Which type of property stocks are considered more likely to navigate the current challenges successfully?

• Established leaders

• New market entrants

• Foreign investors

• Small-scale developers