China Real Estate Market Crash: 5 Stocks at Risk

In this article, we will look at 5 stocks at risk from a potential real estate crash in China. If you want to explore similar stocks and read more background on the Chinese housing market crisis, you should also check out China Real Estate Market Crash: 10 Stocks at Risk.

5. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 26

Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. Rio Tinto Group (NYSE:RIO) could get hurt by slowing demand in China and as of August 11, the stock has reflected that, dropping by 30.31% over the past 12 months.

On July 27, Rio Tinto Group (NYSE:RIO) reported its earnings results for the six months that ended on June 30. The company reported EPS of $5.327 and revenue of $29.8 billion, the latter down 10% year-over-year. The company’s consolidated sales revenue in China fell to 52.1% in the first-half of 2022, down from 59.9% in the comparable period last year.

On July 28, UBS analyst Myles Allsop slashed his price target on Rio Tinto Group (NYSE:RIO) to 4,300 GBP from 4,400 GBP and reiterated a ‘Neutral’ rating on the shares.

At the close of Q1 2022, 26 hedge funds were long Rio Tinto Group (NYSE:RIO), with stakes worth $2.54 billion. That was up from 22 positions in the previous quarter with stakes worth $1.83 billion. As of June 30, Fisher Asset Management owns roughly 14.8 million shares of Rio Tinto Group (NYSE:RIO) and is the largest shareholder in the company.