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Torrid Chinese housing sector cools a bit

  • The average price of a new home in China rose 9% on year in January, although that represents the first slowdown for a year. December's increase was 9.2%.
  • The slight deceleration comes amid attempts by the People's Bank to cool the property sector and rein in lending by tightening monetary policy.
  • Prices increased in 62 out of 70 cities on a monthly basis and dropped slightly in six.
  • Of China's largest metropolises, Guangzhou's prices gained 18.6%, Shenzhen's 17.8%, Beijing's 15% and Shanghai's 17.5%.
  • Meanwhile, Finance Minister Lou Jiwei has played down the fall in the yuan and the risks from the shadow banking sector, while PBOC Governor Zhou Xiaochuan has indicated that the economy can sustain growth of 7-8%
  • The Shanghai Composite -1.75%.
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Comments (2)
  • canb888
    , contributor
    Comments (422) | Send Message
     
    Reading the news about housing prices going up in 62 out of 70 big cities in China, reporters who author these articles seem still not to realize that demand is much greater than supply. Here is the proof: "Of China's largest metropolises, Guangzhou's prices gained 18.6%, Shenzhen's 17.8%, Beijing's 15% and Shanghai's 17.5%." Bubble does not build up or burst when supply cannot meet demand.
    24 Feb 2014, 06:25 AM Reply Like
  • User 353732
    , contributor
    Comments (5046) | Send Message
     
    Real estate and gold are the only 2 avenues for ordinary Chinese to preserve capital and purchasing power. The former is now a proto currency and the latter, of course, has been a proven haven for thousands of years in Asia.
    It is the exchange rate between these 2 stores of wealth that are important ,not between them and fiat currencies.
    24 Feb 2014, 08:38 AM Reply Like
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