Slowing China’s Too-Rapid Property Slump

Restrictions placed on the property market in 2010 to deflate the real estate boom are quietly being lifted at the local level. In only six of China’s 47 municipalities that imposed them do they remain in full force. At central government level there have been a series of targeted steps taken to support the market, the latest being this week’s reopening of the discount residential mortgage market for first-time buyers by the big banks.

Four consecutive months of falling real estate prices have left policymakers concerned about the knock-on effect on the broader economy, from worsening unemployment to heightened stress on the financial system — not to mention a loss of personal wealth among government and Party officials.

It is the softening labour market that is uppermost in their minds. The HSBC preliminary purchasing managers’ index for September points to increasing job losses, even though the mini-stimulus introduced in the second quarter appears to have stabilized what was becoming a too fast a slowdown.

Advertisements

1 Comment

Filed under Economy

One response to “Slowing China’s Too-Rapid Property Slump

  1. Pingback: Facing A Slower Chinese Economy, Xi Needs A Wining Party Plenum | China Bystander

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s