Many consider China to be in a major real estate bubble. Housing prices have skyrocketed thanks to the governments continued demand for growth. There have been signs of a real estate bubble, such as the Chinese, “Ghost Cities,” where cities are being built for millions of people, but no one actually lives there.
Here’s a video that discusses China's massive housing bubble:
If you’re interested in shorting China’s real estate or buying an inverse China Real Estate ETF then there currently aren’t many options available.
ProShares offers a Short China FTSE/Xinhua China 25 Inverse ETF (Ticker Symbol: FXP), which has the opposite performance of the daily average of the Xinhua China 25 index. The index consists of 25 of the largest and most liquid Chinese stocks listed on the Honk Kong Stock Exchange.
ProShares also offers a UltraShort China FTSE/Xinhua China 25Inverse ETF (Ticker Symbol: FXP), which has the opposite performance of the index by 2x or 200% the daily average of the Xinhua China 25 index. The index consists of 25 of the largest and most liquid Chinese stocks listed on the Honk Kong Stock Exchange.
Direxion Daily China Bear 3x (Ticker Symbol: Yang) is another China Index Inverse ETF, which performs 300% or 3x the daily performance of the China Select ADR Index. The BNY Mellow China Select ADR Index tracks the performance of Chinese Companies that are listed on the NYSE, Nasdaq, and AMEX as an ADR. The index is comprised on 53 different Chinese companies in all major sectors.
Investors can also short Guggenheim China Real Estate ETF (TAO) if they are interested in shorting Chinese Real Estate. Many of the stocks that make up this ETF are Hong Kong developers. Investors can either buy puts or short the stock outright.
Another way to indirectly bet against the Chinese Real Estate market is by shorting Chinese Real Estate Related companies that trade on the US stock markets.
These stocks are illiquid and market caps are small, so short with caution in these Chinese stocks trading on the US stock exchanges.
China Housing and Land (CHLN)
Xinyuan Real Estate (XIN)
China Real Estate Information Company (CRIC)
China Shuangji Cement (CSGJ.OB)
China HGS Real Estate (CAHS.OB)
There isn’t an inverse ETF that directly bets against the China Real Estate Bubble, but by using the above, you still may be able to profit when the China Real Estate bubble pops.