Could China's real estate suspension lead to further decline in HKEX?
02 Apr 22 news reported that " At least 33 Hong Kong-listed companies faced suspension from trading after failing to report yearly financials. Over 138 companies had announced that they would not meet the deadline to release their audited 2021 results ." Will this slip lead to a bigger fall in the market? Real estate easily affects about one-third of the China economy. Extract from CNBC news dated 9th Nov 2021: A research paper by renowned Harvard Professor of Public Policy and Economics Kenneth Rogoff and IMF Economist Yuanchen Yang estimated that the real estate sector accounts for around 29% of China’s GDP. “If 29% of GDP just marks time, let alone declines, for the next 10 years ... you will know all about it,” George Magnus, economist and research associate at the China Centre at Oxford University, said. This includes housing investment, services such as managing, renting and buying, along with other inputs such as commodities and consumer durables. " If 29...