However, CapitaLand China Trust (SGX:AU8U
) (CLCT), the pure-play China REIT listed in Singapore, has not been invited to the equity party yet. Its unit price is trading at a 10-year low as sentiment around China remains tenuous despite the recent rally.
On March 12, Bloomberg reported that investors in China have reasons to believe that the market is bottoming out. These included Beijing’s determination to end the stock rout, signs that the economy and earnings are picking up, and a return of foreign inflows.
“The shift reflects how investors are coming to terms with China’s attempts to restructure its economy, with some betting that President Xi Jinping’s attempt to drive high-tech growth and end a property crisis will start to bear fruit. Equity benchmarks have rebounded more than 10% from a February low, a performance that likely shows there were buyers beyond state funds,” Bloomberg says.
