China property to benefit from stimulus package

China property dealers are expected to benefit from the country’s massive stimulus package as well as an improvement in domestic consumption.

Henderson Global Investors said that with slowing global demand, the focus of the US$585 billion stimulus package has been on it’s domestic market and property in particular.

The sector contributes some 15% to the country’s GDP.

Henderson Global Investors said the government support combined with low valuations as a result of global sell-offs creates investment opportunities in China property stocks.

Andrew Mattock, fund manager, Henderson Global Investors, said: ‘We can’t go out consuming aggressively until we’ve bought a house or have somewhere to live. So I think the very first priority for the government and people in China is to buy a house. That’s why it’s going to be an important sector for the country, not just in the near term, but the medium term as well.’
CNA/vm