Units of Singapore-listed retail REIT, CapitaLand Retail China Trust (SGX:AU8U), fell by more than 2% on 13 May as data indicate that the Chinese economy is continuing to lose momentum.
Chinese factory output in April came in weaker than expected. Retail sales growth slowed to 10 percent while investment growth sank to its lowest in 15 years, further deepening fears that Beijing may miss its growth target of 7% for the year.
The Chinese central bank is expected to follow its latest interest rate during the week with more stimulus measures in the quarters ahead. Beijing may also ramp up government procurement to stimulate the economy.
The People's Bank of China (PBOC) has cut benchmark interest rates three times in the past six months to bolster falling real estate prices.
However falling property prices may be a boon for the REIT. CapitaLand Retail China Trust has said in its latest quarterly result that it may be looking out for suitable acquisition opportunities in the country.
Units of CapitaLand Retail China Trust fell by 2.3% (SGD0.04) to close the trading day at SGD1.68.
Note: CapitaLand Retail China Trust is the new name of CapitaRetail China Trust in line with the rebranding exercise across all REITs under the CapitaLand group.