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19 May 2014
Chinese housing sector adds to the economic slowdown – Danske Bank
FXStreet (Edinburgh) - In the opinion of Sverre Holbek, Senior Analyst at Danske Bank, the recent Chinese housing data would increase concerns of a slowdown in the economy.
Key Quotes
“Cooling housing boom is the latest sign of China’s economy slowing”.
“Data tracking developments in 70 cities showed prices rising in fewest cities in one and a half years, as price increases were seen in just 44 cities in April (March: 56). Prices rose 6.7% y/y in April, down from 9.6% in January (see Financial Times)”.
“According to our Asia economists, the weakness in the Chinese housing market appears to have accelerated in the past two months. People’s Bank of China last week urged banks to increase mortgage lending to first-time home buyers”.
“The current weakness in the property market increases the likelihood of a rate cut, albeit this is not yet our forecast”.
Key Quotes
“Cooling housing boom is the latest sign of China’s economy slowing”.
“Data tracking developments in 70 cities showed prices rising in fewest cities in one and a half years, as price increases were seen in just 44 cities in April (March: 56). Prices rose 6.7% y/y in April, down from 9.6% in January (see Financial Times)”.
“According to our Asia economists, the weakness in the Chinese housing market appears to have accelerated in the past two months. People’s Bank of China last week urged banks to increase mortgage lending to first-time home buyers”.
“The current weakness in the property market increases the likelihood of a rate cut, albeit this is not yet our forecast”.