Barings: China property correction is buying opportunity

The head of Barings' Asia Multi Asset Group, Khiem Do, believes ongoing concern over a Chinese property bubble has created good value in the sector.

Do, who also sits on Baring's strategic policy group, says although there is a property bubble forming in China, it is only at the top end of the market and is not linked with GDP growth. He says while policies introduced by the Government to prevent a bubble have led to dramatic fall in the volume of sales, prices have remained static. He believes property valuations will ultimately fall due to a shortage of buyers, but says the effect will be negligible. "The property stocks in China had been losing a lot of value; the price has gone down a lot over the last 12 months or so, and ...