Mark Mobius: Chinese Efforts To Restrict Property Demand Are Doomed To Be Ineffective

mark mobius

Despite stricter restrictions on mortgage lending recently enacted by the Chinese government, emerging markets perma-bull Mark Mobius thinks Chinese demand for housing will remain strong.


“We don’t see fundamentals of the property industry will change much because of these new policies,” Mobius, executive chairman at Templeton, said in response to questions sent by e- mail. “We are in general still light on Chinese developers and if this correction brings valuations to more attractive levels, it would be a good opportunity for us to step up our positions.”

“Recent policy changes on property and mortgages were introduced with the purpose of curbing speculation, but not hurting real demand,” Mobius said.

This view stands in stark contrast to Goldman’s recent view that Chinese property prices could take it on the chin as a result of new mortgage rules. Yet we’d highlight that both Goldman and Mobius are recommending/looking to buy Chinese property shares on any dips. Thus both are still long-term bullish even if they disagree on the short-term property market’s reaction.

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