China’s Housing-Related Stocks Provide a Refuge


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Robert Li and Amy Li, WSJ,

Markets fell across Asia Tuesday, but China’s were the last holdouts, showing gains into the afternoon (the Shanghai Composite finished a bare 0.1% lower)—thanks in part to stocks that stand to benefit from what Morgan Stanley calls the “unprecedented political commitment” behind the country’s subsidized-housing program. The firm predicts “social-housing” starts this year will very likely match market-priced housing (called “commodity housing”) starts for the first time, making social housing a potential growth compensators for 2011 and 2012, in the case of any commodity-housing downturn.

Wu Hong/European Pressphoto Agency

Those beneficiaries include China’s steelmakers, says Everbright Securities. Maanshan Iron gained 5.6% to 4.17 yuan (64 U.S. cents) in Shanghai (its Hong Kong shares were up 1.4% to 4.43 Hong Kong dollars, or 57 U.S. cents). Wuhan Iron & Steel gained 4.8% to 5.02 yuan in Shanghai, Angang Steel gained 3.1 in Shenzhen to 8.74 yuan (flat in Hong Kong at HK$11.14), while Baoshan Iron & Steel gained 3% in Shanghai to 7.53 yuan.

And on a day when the Hong Kong market was down 1.4%, China National Building Materials was up 1.4% to HK$28.65. Even after a run of 63% this year, CNBM’s valuation—while not as attractive as it was—is not yet lofty: 10.8 times this year’s mean forecast earnings per share and nine times next year’s, based on Thomson Reuters surveys.

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