Nowadays when china sneeze, the world will catch a cold. But this past week’s collapse of world major indices seem to be taking its cue from china’s move to tighten credit crunch and it seem more than just a normal flu bug or could it be the more deadly H1N1 virus. I have a bearish stand on property stocks with  heavy China exposure and below is my view on some of the counters includingCapitaland, Yanlord , Panhong and Yingli. This sector will be the shortist’s paradise in the coming weeks.

Capitaland

Even a heavy weight property counter like Capitaland cannot withstand the onslaught of this wave of crash. Capitaland has always been aggressively active in developing its china property business and recently sealed a deal to buy China property assets of Oriental Overseas for $2.2 Billion. The news did send a initial boost to the stock to $4.4 region  but what  a difference a week makes to the stock.

Technically Capitaland has broken down the $4 support formed for 4 mths and now midly breaking through the 200D MA at $3.78. From the chart,the two downside long candlestick with high volume shows how fierce the market is punishing this stock for its exposure in China. 200D MA line doesnt seem to provide any support at this level for the stock. The 200DMA will become major resistance for this stock once broken through.

Yanlord

Yanlord has been traders favourite last year but after it makes the high of $2.9 since last Aug, it has been showing signs of weakness and making successive lower highs until it broke through the major support line at $2.13 about 2 weeks ago ( Refer to blue line in the graph ). Sell off has increased as evident from the volume increase during the price drop.Stock is the first Chinese property counter to break below its 200D MA.

YingLi and Panhong

Both show inherent weakness and seems about to breakthrough the 200D  MA on the downside. Lets see if the 200D MA offers any level of immediate support…

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