Chinese Property Opportunity

In this episode of The Capital Cycle Podcast, Edward Chancellor interviews Kai Chen, an emerging markets analyst from Marathon, about China's real estate market. They discuss the deflation of China's property bubble following President Xi Jinping's tightening measures in 2020, comparing it to the aftermath of real estate bubbles in Japan and the US. Kai Chen suggests that the future of China's property sector depends on whether it undergoes consolidation, like the US, or faces stagnation, like Japan. Chen highlights China Resources Land as a potentially strong player due to its robust balance sheet, prime location projects, and attractive valuation, while also acknowledging the risks of book value decline and the possibility of government intervention hindering true consolidation.