Monday, January 9, 2017

China's Property Ownership Is Consolidating

A lot of information in this one.
From FT Alphaville:

China’s coming property oligopoly, charted
From Citi:
The thesis is simple. More market share based on the need for more market share: “Leaders’ near-term priority for market share will force out small players, raising entry barriers (given difficulties to replenish land) and sowing the seeds for an oligopoly market (巨头垄断) – securing mid-long term earnings visibility. By 20E, the top-10 players’ shares should rise to 35% (top-20: 45%), and they can start diversification with distinctive edges (e.g., huge clientele).”

And do note that we are apparently through the high-paced but coarse growth stage for this market, as per the following charts, the second of which includes actual names for those feeling brave...