Since floating on AIM in July, the Treasury-Holdings backed vehicle China Real Estate Opportunities (CREO) has been trading consistently below its IPO price of stg730p.
Despite what we read here in Ireland, Chinese property is not a one-way bet and more than one investor has been singed, if not burned, by the clouded nature of the market.
For months now the talk has been of a Chinese property meltdown as residential prices are finally exposed as unsustainable and a glut of office space flushes onto the market.
No-one is really sure how much inventory is out there and that hasn’t helped matters either.
If CREO had floated a year previously, it is fair to assume that it would have been trading far more positively.
In 2007, however, all the property spoofers have been larging up Abu Dhabi and Vietnam and regarding China as very, well, 2004.
Investors may get burned in Chinese property meltdown
independent.ie/business/worl … 32623.html
I remember the wall to wall adverts on Newstalk back then for Shanghai property.