Just FYI, an equally price-weighted basket of large Chinese real estate companies is down 8% today. Rumor is going around lots of companies in this sector are not paying interest payments and are on the verge of default. Maybe it could spill over into global markets? Dare I say it could be an outbreak in the market flu?
These companies are much larger than Enron....
Read news here
When this industry contributes 25% of the country's GDP, it is imperative that the CCP will do something to shore up the default players rather than to see them falter on their debts holdings.
This bailout , hopefully will send some of the players shares going up but I would wait a while more before deciding to go LONG on it......
Yikes. Nothing else really to say here, just another domino falling even further.
The chart is an average (1 year or 2 year avg, can't remember, sorry!) equally weighted index of some of the big companies with lots of domestic investments. A handful of these companies, and maybe some not in the chart, are failing to pay interest payments on debt.
Good luck and...
Sunac bounced off the extension target after announcing securing funds from a major shareholder.
Down 11.5% today
a test of 12.90 again on the cards as the move is impulse. A failure puts the stock for an accelerated move down.
Looking to enter at the descending wedge area.
The entry price would be placed at 23.6 or 23.55. Aiming for more than 35% profit as labeled in the chart.
TP 32 to 33 (MA 200)
