https://sg.finance.yahoo.com/news/hong-kong-urges-property-developers-092703886.html
How can the HK finance chief ask the landlords and property developers to cut rents for retailers when the banks don't cut the mortgage instalments for these landlords and developers? This is a back-to-back problem.
The HK finance chief is just trying to protect the banking sector by asking the property owners to sacrifice themselves for the greater good.
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14 comments:
Less pain for property owners & developers to cut rent than to be confiscated at low or nil compensation like in mainland or in early S'pore. LOL!!
I beg to differ.
If the property owners and developers cannot service the mortgage installments because of the reduced rentals, the banks will have escalating non-performing loans and this NPL problem will bring down the banking industry too.
A rental reduction will also cause property devaluation and this will affect REITs as REITS have LTV restrictions. Thus, a rental reduction will have a lot of multipliers' effects in both the property and banking sectors.
Ok confiscate land at $0 or $1 psf compensation will be less pain for banks, property tycoons & reits lol. Faster too. Can mobilise countrywide or citywide reconstruction for the proletariat, instead of having corrupted swanky offices, 6-star hotels, and upscale malls for the bourgeoisie.
What proletariat? The young and brainless Hongkongers only want to make fast money. HK has no future with this young generation because they can't build anything. They're only good at destruction and not construction.
They can always re-populate HK with mainlander Hans, just like Xinjiang lol. Anyway everybody knows reducing rents is less painful than land confiscation. The fear is there for land repatriation by Beijing & is reflected in valuations of property developers and local banks. Almost all HK property developers are priced at only a fraction of their NAV to reflect possibility of forced land confiscation.
Please stop being so intransigency about China and also stop your smearing against China. Your behaviour is no different from those Hongkongers. We both know HK is a self-autonomy province. Do you know that HK is the only province that doesn't pay tributes (taxes) to China? HK can have its own elected CE and set its own laws.
We both know how bad your guesses were. If you refuse to change your mentality, your guesses will still continue to be lousy unless you don't want to improve your analyses.
What forced land confiscation are you talking about? When the property owners and developers cannot service their mortgage installments, their lands and properties will be repossessed by the banks and the repossessions are just commercial decisions. This has nothing to do with China.
It has EVERYTHING to do with China LOL!
Btw if people had followed all your fear mongering about US from 2 years ago till today, they would have missed out on big gains LOL!
There are times to be cautious & times to be bold & times to just TCSS.
What US fearmongering did I do?
If I were to do US fearmongering as you claimed, would I be able to accurately forecast the US interest rate movements? Would I be able to accurately forecast the US GDP declines?
I know the truth is ear-piercing for you because the truth is heart-wrenching. If you can be as objective as me in your analyses, your conjectures would be as accurate as mine.
Please don't fabricate fake news like the US did. Don't lower yourself to be in the same league as the US just because you want to be a US lackey.
Aiyoh, US interest rate movements & GDP have long been broadcasted accurately by many other people already, way before you. It is among the most closely watched & estimated figures in the world. If you're that good --- tell us what will be US GDP for Q4 2020??!? LOL!!
I'm a lackey for myself only. Doesn't matter if US, China or Singapore go to hell, or go to heaven. As long I gain for me & myself! Heheh!!
So far my "guesses" as you called them are mostly correct & profitable, some very much so!!! Huat haarr!!!
Minority of "guesses" didn't pan out as expected but intelligent position sizing & trailing stops takes care of that!
Are you sure many people forecasted the IR movements accurately?
Many people can't even get the direction right in the first place. Many people got the May IR movement wrong but I got it right.
https://sg-stock.blogspot.com/2019/09/us-fed-reduced-interest-rates-in.html
It wasn't a fluke that I got it right but I did it right with an objective analysis.
Anyway, you can continue to boast about your unverifiable trades and investments as long as it makes you happy. However, your conjectures on my blog have proven otherwise.
LOL!! Ok another of my conjectures: keep buying the freaking dips, especially for HK stocks & H shares & shanghai A shares.
For US stocks, reduce & take profits on growth, & pivot to more value.
Maintain 10% to 20% in gold -- it's at the start of a multi-year secular bull. If haven't reached your target allocation in gold, use weakness in current gold prices over these 2 months to accumulate.
US GDP will hit 2.7% in Q4 2020. There will be a "recessionary economy" (but not technical recession) in first half of 2020.
Singapore & China will experience an economy similar to 2015 by mid-2020.
I wish you all the best and I hope you are right this time about the US GDP.
Like I said...
HK just announced use of land resumption ordinance to take back 700 hectares of land from property tycoons to build public housing. That's almost the size of 3 Toa Payoh's.
The irony is that just like our land acquisition act, their land resumption ordinance is also from colonial days. Similar to the emergency powers act of both HK & S'pore. The Brits really thought of all things LOL!
For the time being, the expectation is that HK govt will give "fair" compensation to the property tycoons for their land.
Those tycoons may be "encouraged" to accept a lower price as giving back to society. LOL!
You really love to fabricate fake news under the guise of some real news.
Let me give you the facts:
HK agreed to invoke the land resumption ordinance in September 2019.
https://www.chinadaily.com.cn/a/201909/13/WS5d7b91c9a310cf3e3556b635.html
This invocation is a "one stone kills 2 birds" smart move. This will appease the general public and also reduce the financial burdens of the property developers since they will be compensated at market value because the property market is in a bad shape now. Furthermore, the banks will also benefit from the upcoming sales since the government has relaxed the lending rules.
https://www.chinadailyhk.com/articles/100/32/116/1571213912834.html?newsId=109833
The HK retail rents are falling sharply because the landlords cannot find tenants. Private property sales have dropped a lot too.
https://www.channelnewsasia.com/news/business/hong-kong-retail-rents-fall-q3-protests-mtr-property-12001850
700hectares = 7 sq km
Toa Payoh land size is 8.17 sq km. How can 7 sq km be 3 times bigger than 8.17 sq km?
Please stop fabricating fake news.
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