China’s property companies gaining attraction for investors on valuation
Shares of a number of Chinese developers are thought to be undervalued, making them ideal for investors in the market. The price earnings (PE) ratio is a metric used by investors to partly determine if a stock is worth investing in, with most companies having an average reading of 15 to 17. China's property sector is thought to be undervalued as it has a historical average of 10.6. However, mainland developers are still reluctant to invest in China's property sector because of high land prices in major cities, with Citi Bank predicting that there will be a 7% decline in the growth of real estate investment in 2016.   

A residential area in Beijing as shares of a number of Chinese developers are believed to be undervalued and may be ideal for investors in the market. Photo: Reuters