Work

The performance of Chinese real estate firms: media concerns and special treatment status

Year: 2025

Type: article

Abstract: The proportion of Chinese listed real estate firms under special treatment (ST) is an important but lagging financial risk indicator for investing in Chinese real estate funds. In this paper, we propose to use media concerns about real estate as an early warning indicator of financial risk. Using regression analysis, we confirm their predictive value for the proportion of ST real estate firms in China. Furthermore, we show the financial value of the news-based early warning indicator for a risk on/off tactical asset allocation portfolio invested in the CSI 300 Real Estate Index.

Source: Journal of the Asia Pacific Economy

DOI: 10.1080/13547860.2025.2584029

Authors: Kris Boudt, Xianda Liang

Institutions: Ghent University, Vrije Universiteit Brussel

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Funders: Fonds Wetenschappelijk Onderzoek, Vrije Universiteit Brussel, China Scholarship Council, Vlaamse regering

Awards: G5160350526, NEWS DIVING: News Sentiment Diversity, Index construction and Generative models