Bill-Simpson

Xinyuan Real Estate IPO Analysis: Poised for a Strong 2008

PRC is always the wildcard with these China IPOs...What I like however is XIN's very strong pipeline coupled with really a blowout quarter in the 9/30 Q. Also most of their housing is aimed at the middle class and at square footage below the PRC's targeted 'housing price slowdown' number...the PRC seems to be focusing on cooling the luxury housing market...however if they do turn their attention to greater restrictions in the middle income market, XIN would have a tougher road to go. right now though with the continued swift urbanization of China, XIN's housing builds are in great demand. we'll see, I do agree that the issue many of these China ipos face is what will the PRC do going forward to restrict and/or slowdown the Chinese economy.