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Spatial co-ordinations are initially random, and will automatically re-arrange to minimize complexity based on distance between relationships. Mouse down and drag to pan. Right click on the strategic diagram toggles between motion and stationary. Hoover over the leaf node to view corresponding narrative. Left click on the leaf node expands the narrative to view full text.

Narrative Analysis - Report

Key Focus

  • However, with GDP growth slowing and the Covid-19 situation globally remaining uncertain, the government needs to strike a fine balance between excessively cooling the property market and maintaining growth since property is an important contributor to China 's GDP
  • I believe this consistent policy will lead to a more stable residential price growth and hence more stable communities as well as a stable economy. . . China 's newly announced China real estate investment trusts (C-Reit) will further support investment and growth in new asset classes such as business parks, life sciences, logistics and data centres
  • We continue to monitor the risks associated with the sector, and remain focused on our bottom-up stock picking to identify the highest and sustainable growth companies with sound or improving ESG profiles
  • No momentum supporting factor found

    Challenge supporting factors

  • (developers,bonds,weaker)
  • (developers,weaker)
  • Work-in-progress supporting factors

  • (china,growth,investment)
  • (china,gdp)
  • (china,growth,gdp)
  • (china,growth,strike)
  • (china,strike)
  • (china,growth,stock)
  • (china,risks,stock)
  • (china,growth,risks)
  • (china,growth,policy)
  • (china,investment,policy)
  • Narrative Summary - REPORT


    Time PeriodChallengeMomentumWIP
    Report4.30 0.00 95.70

    High Level Abstraction (HLA) combined

    High Level Abstraction (HLA)Report
    (1) (china,growth,investment)100.00
    (2) (china,gdp)97.63
    (3) (china,growth,gdp)96.44
    (4) (china,growth,strike)94.07
    (5) (china,strike)93.68
    (6) (china,growth,stock)91.70
    (7) (china,risks,stock)90.91
    (8) (china,growth,risks)89.33
    (9) (china,growth,policy)87.35
    (10) (china,investment,policy)83.40
    (11) (investment,policy)82.21
    (12) (china,growth,important)81.82
    (13) (china,investment,long-term,wealth)78.26
    (14) (china,investment,wealth)72.73
    (15) (investment,long-term,wealth)71.54
    (16) (china,investment,long-term,outlook)70.36
    (17) (china,investment,outlook)65.61
    (18) (investment,long-term,outlook)64.03
    (19) (china,investment,keep)63.24
    (20) (china,investment,long-term,keep)59.29
    (21) (china,long-term,keep)56.13
    (22) (china,wealth,keep)54.94
    (23) (investment,long-term,keep)54.55
    (24) (china,investment,long-term,household)54.15
    (25) (china,long-term,household)51.38
    (26) (china,wealth,household)49.80
    (27) (investment,long-term,household)49.41
    (28) (china,investment,ping_an_insurance)46.25
    (29) (china,wealth,sino-us_china)45.06
    (30) (china,wealth,long-term)43.87
    (31) (china,wealth,expand)43.48
    (32) (china,wealth,cities)43.08
    (33) (china,risks,regulators)42.69
    (34) (china,risks,investors)42.29
    (35) (china,risks,experts)41.90
    (36) (china,risks,esg)41.50
    (37) (china,risks,equity)41.11
    (38) (china,risks,chinese)40.71
    (39) (china,policy,speculation)40.32
    (40) (china,policy,economy)39.92
    (41) (china,long-term,reining)39.13
    (42) (china,long-term,outlook)38.34
    (43) (china,long-term,credit)37.15
    (44) (developers,policy,risk)36.76
    (45) (developers,policy,near-term)36.36
    (46) (developers,bonds,maturities)35.97
    (47) (developers,policy,maturities)32.81
    (48) (developers,policy,debt)32.41
    (49) (developers,policy,bonds)30.83
    (50) (developers,model)28.46
    (51) (developers,bonds,weaker)25.69
    (52) (developers,weaker)24.90
    (53) (developers,bonds,rmb1)22.53
    (54) (developers,rmb1)21.34
    (55) (developers,bonds,risk)19.37
    (56) (developers,risk)17.79
    (57) (developers,bonds,puttable)16.21
    (58) (developers,bonds,near-term)14.23
    (59) (developers,transit-oriented)11.46
    (60) (developers,space)11.07
    (61) (investment,wealth)10.67
    (62) (investment,growth)10.28
    (63) (investment,asset,china)9.88
    (64) (investment,asset,regeneration)5.53
    (65) (investment,regeneration)4.74
    (66) (investment,asset,policies)3.95
    (67) (investment,asset,opportunities)3.16
    (68) (investment,asset,growth)1.98
    (69) (investment,asset,business)1.19
    (70) (investment,asset,beijing)0.79
    (71) (investment,sentiment)0.40

    Narrative Analysis - REPORT

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    Supporting narratives:

    Please refer to knowledge diagram for a complete set of supporting narratives.

    • challenge (Read more) - Back to HLA
      • Maturing or puttable bonds by Chinese property developers are likely to fall slightly over the next year and some weaker developers 'liquidity position may stay tight, according to a Fitch Ratings report
      • High Level Abstractions:
        • (developers,bonds,weaker)
        • (developers,weaker)
        • Inferred entity relationships (7)
        • (bonds,developers,puttable) [inferred]
        • (developers,weaker) [inferred]
        • (bonds,developers,risk) [inferred]
        • (bonds,developers,near-term) [inferred]
        • (bonds,developers,rmb1) [inferred]
        • (bonds,developers,maturities) [inferred]
        • (bonds,developers,policy) [inferred]

    • WIP (Read more) - Back to HLA
      • I believe this consistent policy will lead to a more stable residential price growth and hence more stable communities as well as a stable economy. . . China 's newly announced China real estate investment trusts (C-Reit) will further support investment and growth in new asset classes such as business parks, life sciences, logistics and data centres
      • High Level Abstractions:
        • (china,growth,investment)
        • (investment,growth)
        • Inferred entity relationships (6)
        • (china,growth,risks) [inferred]
        • (china,growth,strike) [inferred]
        • (china,growth,stock) [inferred]
        • (growth,investment) [inferred]
        • (china,growth,policy) [inferred]
        • (china,growth,important) [inferred]

    • WIP (Read more) - Back to HLA
      • However, with GDP growth slowing and the Covid-19 situation globally remaining uncertain, the government needs to strike a fine balance between excessively cooling the property market and maintaining growth since property is an important contributor to China 's GDP
      • High Level Abstractions:
        • (china,strike)
        • (china,gdp)
        • (china,growth,gdp)
        • (china,growth,strike)
        • Inferred entity relationships (7)
        • (china,growth,risks) [inferred]
        • (china,gdp,growth) [inferred]
        • (china,growth,investment) [inferred]
        • (china,growth,stock) [inferred]
        • (china,growth,policy) [inferred]
        • (china,growth,important) [inferred]
        • (china,gdp) [inferred]

    • WIP (Read more) - Back to HLA
      • We continue to monitor the risks associated with the sector, and remain focused on our bottom-up stock picking to identify the highest and sustainable growth companies with sound or improving ESG profiles
      • High Level Abstractions:
        • (china,growth,risks)
        • (china,risks,stock)
        • (china,growth,stock)
        • Inferred entity relationships (6)
        • (china,growth,risks) [inferred]
        • (china,growth,strike) [inferred]
        • (china,growth,investment) [inferred]
        • (china,growth,stock) [inferred]
        • (china,growth,policy) [inferred]
        • (china,growth,important) [inferred]

    • WIP (Read more) - Back to HLA
      • I believe this consistent policy will lead to a more stable residential price growth and hence more stable communities as well as a stable economy
      • High Level Abstractions:
        • (china,investment,policy)
        • (investment,policy)
        • (china,growth,policy)
        • Inferred entity relationships (13)
        • (china,growth,strike) [inferred]
        • (china,investment,wealth) [inferred]
        • (china,investment,ping_an_insurance) [inferred]
        • (china,growth,important) [inferred]
        • (china,investment,long-term,outlook) [inferred]
        • (china,growth,risks) [inferred]
        • (china,investment,long-term,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,keep) [inferred]
        • (china,growth,investment) [inferred]
        • (china,growth,stock) [inferred]
        • (investment,policy) [inferred]
        • (china,investment,keep,long-term) [inferred]

    • WIP (Read more) - Back to HLA
      • However, with GDP growth slowing and the Covid-19 situation globally remaining uncertain, the government needs to strike a fine balance between excessively cooling the property market and maintaining growth since property is an important contributor to China 's GDP.
      • High Level Abstractions:
        • (china,growth,important)
        • Inferred entity relationships (5)
        • (china,growth,risks) [inferred]
        • (china,growth,strike) [inferred]
        • (china,growth,investment) [inferred]
        • (china,growth,stock) [inferred]
        • (china,growth,policy) [inferred]

    • WIP (Read more) - Back to HLA
      • As China tries to keep property prices stable and discourage investment from flowing into property excessively, household wealth may move to build up more long-term financial assets.
      • High Level Abstractions:
        • (china,wealth,long-term)
        • (china,investment,long-term,wealth)
        • (investment,long-term,wealth)
        • (investment,long-term,household)
        • (china,wealth,household)
        • (china,long-term,household)
        • (china,investment,wealth)
        • (china,investment,long-term,household)
        • Inferred entity relationships (17)
        • (china,long-term,outlook) [inferred]
        • (investment,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,long-term,wealth) [inferred]
        • (household,investment,long-term) [inferred]
        • (china,household,long-term) [inferred]
        • (investment,long-term,outlook) [inferred]
        • (china,investment,wealth) [inferred]
        • (investment,long-term,wealth) [inferred]
        • (china,investment,ping_an_insurance) [inferred]
        • (china,household,investment,long-term) [inferred]
        • (china,investment,policy) [inferred]
        • (china,household,wealth) [inferred]
        • (china,investment,long-term,outlook) [inferred]
        • (china,investment,keep) [inferred]
        • (china,long-term,reining) [inferred]
        • (china,investment,keep,long-term) [inferred]

    • WIP (Read more) - Back to HLA
      • Jessica Tea, s enior investment specialist, Greater China equities. . In our view, the long-term outlook for China property sector remains uncertain.
      • High Level Abstractions:
        • (investment,long-term,outlook)
        • (china,investment,long-term,outlook)
        • (china,investment,outlook)
        • Inferred entity relationships (10)
        • (china,investment,wealth) [inferred]
        • (investment,long-term,wealth) [inferred]
        • (china,investment,ping_an_insurance) [inferred]
        • (china,investment,policy) [inferred]
        • (china,investment,long-term,outlook) [inferred]
        • (china,investment,long-term,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,keep) [inferred]
        • (china,investment,keep,long-term) [inferred]
        • (investment,long-term,outlook) [inferred]

    • WIP (Read more) - Back to HLA
      • As China tries to keep property prices stable and discourage investment from flowing into property excessively, household wealth may move to build up more long-term financial assets
      • High Level Abstractions:
        • (china,investment,keep)
        • (china,long-term,keep)
        • (china,investment,long-term,keep)
        • (china,wealth,keep)
        • (investment,long-term,keep)
        • Inferred entity relationships (11)
        • (china,investment,wealth) [inferred]
        • (china,keep,long-term) [inferred]
        • (china,investment,ping_an_insurance) [inferred]
        • (china,investment,policy) [inferred]
        • (investment,keep,long-term) [inferred]
        • (china,investment,long-term,outlook) [inferred]
        • (china,investment,long-term,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,keep) [inferred]
        • (china,keep,wealth) [inferred]
        • (china,investment,keep,long-term) [inferred]

    • WIP (Read more) - Back to HLA
      • The China Banking and Insurance Regulatory Commission (CBIRC) ordered Ping An Insurance to stop selling alternative investment products, which are typically tied to the property market, according to a Reuters report last week
      • High Level Abstractions:
        • (china,investment,ping_an_insurance)
        • Inferred entity relationships (7)
        • (china,investment,long-term,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,wealth) [inferred]
        • (china,investment,keep) [inferred]
        • (china,investment,policy) [inferred]
        • (china,investment,keep,long-term) [inferred]
        • (china,investment,long-term,outlook) [inferred]

    • WIP (Read more) - Back to HLA
      • What we observe since 2018 is that China has faced three key challenges related to property: 1) Sino-US China tensions, 2) Rapid decline in birth rates, and 3) increasing wealth inequality
      • High Level Abstractions:
        • (china,wealth,sino-us_china)

    • WIP (Read more) - Back to HLA
      • Besides, China aims to expand the property tax system from some trial programs in some large cities to the whole country, mostly as homeownership is one of the major causes of wealth inequality in China
      • High Level Abstractions:
        • (china,wealth,expand)
        • (china,wealth,cities)

    • WIP (Read more) - Back to HLA
      • As Chinese regulators tighten scrutiny on the property sector, experts generally believe valuations remain attractive, but investors should take precautions such as avoiding smaller names with weak cash flow and focusing on equity over bonds, which have mounting default risks
      • High Level Abstractions:
        • (china,risks,regulators)
        • (china,risks,chinese)
        • (china,risks,experts)
        • (china,risks,investors)

    • WIP (Read more) - Back to HLA
      • We continue to monitor the risks associated with the sector, and remain focused on our bottom-up stock picking to identify the highest and sustainable growth companies with sound or improving ESG profiles.
      • High Level Abstractions:
        • (china,risks,esg)

    • WIP (Read more) - Back to HLA
      • As Chinese regulators tighten scrutiny on the property sector, experts generally believe valuations remain attractive, but investors should take precautions such as avoiding smaller names with weak cash flow and focusing on equity over bonds, which have mounting default risks.
      • High Level Abstractions:
        • (china,risks,equity)

    • WIP (Read more) - Back to HLA
      • China 's top officials have always maintained a consistent policy that"residential is for people to live in rather than for speculation".
      • High Level Abstractions:
        • (china,policy,speculation)

    • WIP (Read more) - Back to HLA
      • I believe this consistent policy will lead to a more stable residential price growth and hence more stable communities as well as a stable economy.
      • High Level Abstractions:
        • (china,policy,economy)

    • WIP (Read more) - Back to HLA
      • In our view, the long-term outlook for China property sector remains uncertain. Beijing has attached national strategic importance to reining in property bubbles, and directly intervening in the credit supply for the property sector
      • High Level Abstractions:
        • (china,long-term,reining)
        • Inferred entity relationships (2)
        • (china,long-term,wealth) [inferred]
        • (china,long-term,outlook) [inferred]

    • WIP (Read more) - Back to HLA
      • Jessica Tea, s enior investment specialist, Greater China equities. . In our view, the long-term outlook for China property sector remains uncertain. Beijing has attached national strategic importance to reining in property bubbles, and directly intervening in the credit supply for the property sector
      • High Level Abstractions:
        • (china,long-term,outlook)
        • Inferred entity relationships (2)
        • (china,long-term,wealth) [inferred]
        • (china,long-term,reining) [inferred]

    • WIP (Read more) - Back to HLA
      • Beijing has attached national strategic importance to reining in property bubbles, and directly intervening in the credit supply for the property sector.
      • High Level Abstractions:
        • (china,long-term,credit)

    • WIP (Read more) - Back to HLA
      • Continued policy tightening remains the major, near-term risk as it would potentially trigger more property company debt defaults, which could cause a contagion effect on the rest of the sector and make it more difficult to refinance upcoming maturities
      • High Level Abstractions:
        • (developers,policy,risk)
        • (developers,policy,near-term)
        • (developers,policy,debt)
        • Inferred entity relationships (1)
        • (developers,policy,risk) [inferred]

    • WIP (Read more) - Back to HLA
      • Continued policy tightening remains the major, near-term risk as it would potentially trigger more property company debt defaults, which could cause a contagion effect on the rest of the sector and make it more difficult to refinance upcoming maturities.
      • High Level Abstractions:
        • (developers,bonds,maturities)
        • (developers,policy,maturities)
        • Inferred entity relationships (7)
        • (bonds,developers,puttable) [inferred]
        • (bonds,developers,risk) [inferred]
        • (bonds,developers,near-term) [inferred]
        • (bonds,developers,weaker) [inferred]
        • (bonds,developers,rmb1) [inferred]
        • (bonds,developers,policy) [inferred]
        • (developers,maturities,policy) [inferred]

    • WIP (Read more) - Back to HLA
      • The government policy tightening towards the residential property market has weighed heavily on the share prices of listed property companies and their bonds, especially the more highly levered property developers.
      • High Level Abstractions:
        • (developers,policy,bonds)
        • Inferred entity relationships (7)
        • (developers,policy,risk) [inferred]
        • (bonds,developers,puttable) [inferred]
        • (bonds,developers,risk) [inferred]
        • (bonds,developers,near-term) [inferred]
        • (bonds,developers,weaker) [inferred]
        • (bonds,developers,rmb1) [inferred]
        • (bonds,developers,maturities) [inferred]

    • WIP (Read more) - Back to HLA
      • The authorities aim to change the pre-sell model of property completion, which will change the business model of property developers
      • High Level Abstractions:
        • (developers,model)

    • WIP (Read more) - Back to HLA
      • Its total liabilities reached RMB1.97 trillion ($304.45 billion) as of June 30. Maturing or puttable bonds by Chinese property developers are likely to fall slightly over the next year and some weaker developers 'liquidity position may stay tight, according to a Fitch Ratings report
      • High Level Abstractions:
        • (developers,bonds,rmb1)
        • (developers,rmb1)
        • (developers,bonds,puttable)
        • Inferred entity relationships (8)
        • (bonds,developers,puttable) [inferred]
        • (developers,rmb1) [inferred]
        • (bonds,developers,risk) [inferred]
        • (bonds,developers,near-term) [inferred]
        • (bonds,developers,weaker) [inferred]
        • (bonds,developers,rmb1) [inferred]
        • (bonds,developers,maturities) [inferred]
        • (bonds,developers,policy) [inferred]

    • WIP (Read more) - Back to HLA
      • The government policy tightening towards the residential property market has weighed heavily on the share prices of listed property companies and their bonds, especially the more highly levered property developers. Continued policy tightening remains the major, near-term risk as it would potentially trigger more property company debt defaults, which could cause a contagion effect on the rest of the sector and make it more difficult to refinance upcoming maturities
      • High Level Abstractions:
        • (developers,bonds,risk)
        • (developers,risk)
        • (developers,bonds,near-term)
        • Inferred entity relationships (9)
        • (bonds,developers,near-term) [inferred]
        • (bonds,developers,rmb1) [inferred]
        • (developers,near-term,policy) [inferred]
        • (bonds,developers,puttable) [inferred]
        • (bonds,developers,risk) [inferred]
        • (bonds,developers,weaker) [inferred]
        • (bonds,developers,maturities) [inferred]
        • (developers,risk) [inferred]
        • (bonds,developers,policy) [inferred]

    • WIP (Read more) - Back to HLA
      • Some of these better-quality developers have expertise in transit-oriented developments negotiated directly with the government or urban renewal projects that should help protect them from the margin compression the sector is experiencing
      • High Level Abstractions:
        • (developers,transit-oriented)

    • WIP (Read more) - Back to HLA
      • That said, valuations in the listed property space are very cheap and there are opportunities to buy high-quality developers with sound balance sheets and unique advantages in land sourcing at discounted prices
      • High Level Abstractions:
        • (developers,space)

    • WIP (Read more) - Back to HLA
      • Besides, China aims to expand the property tax system from some trial programs in some large cities to the whole country, mostly as homeownership is one of the major causes of wealth inequality in China. As China tries to keep property prices stable and discourage investment from flowing into property excessively, household wealth may move to build up more long-term financial assets
      • High Level Abstractions:
        • (investment,wealth)

    • WIP (Read more) - Back to HLA
      • China 's newly announced China real estate investment trusts (C-Reit) will further support investment and growth in new asset classes such as business parks, life sciences, logistics and data centres
      • High Level Abstractions:
        • (investment,asset,china)
        • (investment,asset,growth)
        • Inferred entity relationships (9)
        • (china,investment,long-term,wealth) [inferred]
        • (china,investment,outlook) [inferred]
        • (china,investment,wealth) [inferred]
        • (china,investment,keep) [inferred]
        • (china,investment,ping_an_insurance) [inferred]
        • (china,investment,policy) [inferred]
        • (growth,investment) [inferred]
        • (china,investment,keep,long-term) [inferred]
        • (china,investment,long-term,outlook) [inferred]

    • WIP (Read more) - Back to HLA
      • The latest announcement on urban regeneration policies in both Shanghai and Beijing will offer more investment opportunities for asset managers with strong local teams on the ground
      • High Level Abstractions:
        • (investment,asset,regeneration)
        • (investment,asset,policies)
        • (investment,asset,beijing)
        • (investment,regeneration)
        • Inferred entity relationships (4)
        • (investment,regeneration) [inferred]
        • (asset,investment,policies) [inferred]
        • (asset,investment,opportunities) [inferred]
        • (asset,investment,regeneration) [inferred]

    • WIP (Read more) - Back to HLA
      • The latest announcement on urban regeneration policies in both Shanghai and Beijing will offer more investment opportunities for asset managers with strong local teams on the ground.
      • High Level Abstractions:
        • (investment,asset,opportunities)
        • Inferred entity relationships (2)
        • (asset,investment,policies) [inferred]
        • (asset,investment,regeneration) [inferred]

    • WIP (Read more) - Back to HLA
      • China 's newly announced China real estate investment trusts (C-Reit) will further support investment and growth in new asset classes such as business parks, life sciences, logistics and data centres.
      • High Level Abstractions:
        • (investment,asset,business)

    • WIP (Read more) - Back to HLA
      • Signs of this could help trigger improved sentiment and drive a rally in both property equities and bonds. . . Jessica Tea, s enior investment specialist, Greater China equities
      • High Level Abstractions:
        • (investment,sentiment)