Balance sheet concerns seem overdone; dividends and yields look good
Following recent pullbacks in share prices, we believe select Chinese developers are now offering attractive dividend yields even if we base them on the actual declared dividends in 2011.

Over half of the developers that we cover raised dividends in 2011
Despite the market's concerns on the financial position and refinancing ability of Chinese property names in 2011, ,in general they were able to declare growth in dividends in 2011, suggesting that the concerns on their financial position are likely overdone.

David Fuller's view This is a good, factual report likely to appeal to value investors. Here are the price charts for Deutsche Bank's two top picks in this sector:

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Among the high-yielders, R&F and Evergrande are preferred by Deutsche Bank (see page 3 of the report). R&F still yields 8% following a good recover in January and February. These gains are being consolidated and the share remains above its 200-day MA which has also turned upwards. A close beneath HKD7.88% would be required to indicate somewhat lower trading before the share ranges sideways to higher. Evergrande yields 5.5% and seems reasonably well supported by underlying trading. A close above HKD5.0 would indicate a resumption of the recovery. A number of the other shares mentioned in this report are listed in the Chart Library.