Despite the government’s effort to cool the property market in China, home prices in major Chinese cities surged 7.4% in June as compared to a year ago based on a survey of 100 cities. These results were published by SouFun Holdings, the nation’s biggest real estate website owner.
 
“Both new and existing home transactions gradually stabilized recently in many cities, indicating that home buying demand remains strong,” SouFun said in the statement yesterday. As a result, a gauge tracking property shares rose 1.1% at the close of trading in Shanghai.
 
Yanlord is trading near its lows this year, hitting a low of $1.21 on 25 June. The last time the counter traded at these levels was in Oct 2012. Investors who hold the view that Yanlord will rebound from here can consider call warrant SG7W, which has a strike of $1.20, the lowest in the market.
 
Macquarie Equities Research (MER) has a ‘Neutral’ rating on the counter with a 12-month price target of $1.44.

Source: Macquarie Research - 2 Jul 2013