The Hindu Business Line : `Chinese property cos better off against desi peers'

Chinese property development companies offer better investment prospects for international investors compared to those from India, Mr Adrian Mowat, Chief Asian Equity Strategist, JP Morgan Securities (Asia Pacific), has said.

Unlike Indian real estate development companies, Chinese property developers are quick to develop and sell their properties, making them more attractive.

According to him, land banks should be treated as "inventories" and JP Morgan treats companies with land banks at a "discount." Chinese realty developers do not keep their land banks idle as they develop residential and commercial complexes at fast pace to meet growing demand.

"Ultimately, what matters is the amount of cash that a business brings in," he told reporters today. Shares of Indian real estate companies had seen a bull-run in recent times, based on the huge land banks they hold.

Commenting on the Indian stock market, Mr Mowat said JP Morgan had downgraded India to `underweight' in early May. Compared to other emerging markets, corporate growth is stronger in India with the exception of Thailand.

Among emerging equity markets, China, Russia, Turkey and the Philippines moved to `overweight' while Central Europe and India were downgraded to `underweight'.

On the recent drop in share valuations, he said, "probably, we have seen the worst, but it takes time to get a (clear picture on the) direction."

Mr Mowat said Indian markets could expect to see "reasonable amount of volatility.'' He remained bullish on India in terms of the growth story.

Among sectors, IT and pharmaceuticals would provide better opportunity for local investors

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