Real Estate

Fund Manager Sees Bottom for China Property Sector

  • Investors who wait too long may miss out on rebound: Loomis
  • ‘A lot of the negative views are well priced’: JPMorgan Asset

Residential buildings developed by Sunac China Holdings Ltd. in Beijing, China.

Source: Bloomberg

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Global fund giant Loomis Sayles & Co. is turning more positive on China’s battered real estate sector, saying recent debt restructuring arrangements are bearing fruit and improved sentiment may result in a faster-than-expected bounceback.

Investors who wait too long may miss out on the rebound, according to Matt Eagan, a fund manager at Boston-based Loomis Sayles, which oversees $303 billion. Fellow asset manager Fidelity International also senses an opportunity, saying history shows investing in the surviving developers of a housing downturn can be very profitable.