The market sentiment deteriorated amid fresh US-China tensions. Investors remain cautious as increasing virus cases may damage economic activity again.
China's new home prices rally in September led by smaller cities
In September, China's new home prices managed to surge at a firm tempo, backed by profits in smaller cities and demonstrating that the market was still resilient notwithstanding pressures from softer investment, a decelerating economy as well as government curbs on the sector.
In the country’s 70 key cities, in September, average new home prices headed north by 0.9% from August, which is slower than the previous month's outcome of 1.4% that appeared to be the fastest surge for two years.
In contrast with 2017, new home prices rallied by 7.9%, which is the quickest year-on-year leap since August last year and also faster than August’s 7% leap.
Prices kept soaring notwithstanding tougher curbs expected to tame a near-three-year real estate boom, which has spilled over from megalopolises to the hinterland.
While firm surge in the sector could cushion the influence of a mighty multi-year government clampdown on debt as well as escalating trade clashes with America, it could also generate fears of another bubble if prices surge greatly.
Real estate has appeared to be one of the few bright sectors the Asian country’s investment landscape, partly because of good sales in smaller cities exactly where a government crackdown on speculation hasn’t been as hawkish as in larger cities.
Prices in the country’s largest cities exactly where the severest control measures are taken, were generally steady in September, although Guangzhou prices added 0.4% on-month as well as 4.3% year-on-year.
In September, the top price performer was the capital of the country’s northwestern Shaanxi province, Xian whose prices headed north by 6.2% from August, as NBS data revealed.
According to official data, surge in the country’s real estate investment speeded down in September.
Additionally, real estate investment surged by up to 8.9% in September from 2017.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
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The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.