SCB Research report - 28 July 2011

China property – Mid-year review and outlook

• While property demand softened in H1, average selling prices continued to trend up or held steady
• • Policy controls and credit tightening will continue until the upward price trend reverses
• • Large developers will outperform small to medium-sized ones in a weak market
• • Our top picks are CHIOLI 20, CHIBEI 16, YLLG 17, LNGFOR 16, COGARD 17, EVERRE 15 and CENCHI 15
• • We also recommend investors switch from SHIMAO 16 to KWGPRO 16, and from KAISA 15 to HPDLF 16