Chinese housing sector continues to cool

|By:, SA News Editor

Average new home prices in 70 major cities rose 8.2% on year in February after moderating to 9% in January, the WSJ calculates. On a monthly basis, home prices rose in 57 cities vs 62 in January. The weakening of the growth in house prices comes amid Chinese government efforts to cool the sector.

Meanwhile, foreign direct investment in China grew 4.1% on year to $8.6B in February, press calculations show, but growth was down sharply from 16.1% in January.

FDI climbed 10.4% to $19.3B in the first two months of the year, the government said.

The reading comes with the rider, as is the case with other economic data, that the Lunar New Year may well distorted the figures.

The latest data follows China unveiling a long-awaited urbanization plan to move 100M people into cities from rural areas. Farmers will be able to more easily sell or lease their land, find jobs in cities, and receive public services in urban areas.

The Shanghai Composite is +0.1%.

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