CapitaLand's sales to surge on back of China rate cuts

It derives 40% of its value from China.

Among local residential developers, CapitaLand emerges as the biggest winner when it comes to the People’s Bank of China’s lending rate cuts.

According to UOB Kay Hian, the 14-40bp rate cut coupled with a selective lifting of home purchase restrictions could spur a recovery in the residential segment, which will benefit CapitaLand as it derives nearly 40% of its value from China.

“Management plans to strengthen CapitaLand’s presence in five key clusters– Beijing, Shanghai, Chengdu-Chongqing, Guangzhou-Shenzhen and Wuhan. Upcoming launches include Lotus Mansion and New Horizon in Shanghai, Parc Botanica and Chengdu Century Park in Chengdu, The Metropolis in Kunshan and Dolce Vita in Guangzhou, which will collectively yield about 4,000 units,” stated UOB Kay Hian.