Yanlord, China Property Market weak- GS

Yanlord Land (Z25.SG) heads lower as worries over weakness in China property market weigh on sentiment; stock down 3.4% at 4-week low of S$2.28. Goldman Sachs says primary market property sales in China''s major cities were down 12%-78% on year last week with earthquake-hit Chengdu market particularly weak. Broker notes number of unsold properties is growing; "we are concerned about inventory building up quickly in Shenzhen, Beijing, Chengdu and Xi''an." Broker highlights risk that spiraling downward sentiment in Shenzhen could spill over to other major cities in China, sees further downside for China developers'' share prices, earnings forecasts. But Yanlord now oversold on technical indicators after 5 straight days of declines and volume accompanying selldown tailing off, so may find a floor soon with support tipped at April 21 low of S$2.16