Shares of Singapore’s CapitaLand (CATL.SI), Southeast Asia’s largest property developer, fell as much as 3.7% on Monday on fears about the economic slowdown in China, where it has around 45% of its assets, analysts and traders said.
At 11:16 a.m., CapitaLand shares were trading at $2.85 on a volume of 11.2 million shares.
At 11:16 a.m., CapitaLand shares were trading at $2.85 on a volume of 11.2 million shares.
China posted a smaller-than-expected trade surplus of US$13.1 billion ($16.2 billion) in May because of soaring imports and weaker growth of global demand. Chinese banks also extended fewer new loans than expected in the month.
“Among all the developers listed in Singapore, CapitaLand is one of the most leveraged in China as 45% of its assets are in China,” said Donald Chua, an analyst at CIMB Research.
However, Chua said CapitaLand’s portfolio in China also includes commercial, retail and hospitality assets, which are more resilient than the residential segment.
“If there’s a bounce in the general market direction, CapitaLand would see a much stronger bounce than the rest of the listed peers because the stock has underperformed the sector,” he added.
Sentiment for Singapore-listed property stocks has also been hit after the Singapore government said last week it will release more land for private housing in the second half of this year to meet strong demand.
“China seems to be slowing down and in Singapore there are also concerns about more supply, so CapitaLand is affected by both sides,” said a local trader.
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