Prop­erty in­vest­ment fur­ther ac­cel­er­ates

China Daily (Canada) - - NEWS CAPSULE -

In­vest­ment in China's prop­erty sec­tor rose 6.6 per­cent yearon-year in the first 10 months of 2016, higher than the 5.8 per­cent posted in the first nine months, ac­cord­ing to of­fi­cial data.

The push by China's pol­icy mak­ers to rein in prop­erty bub­bles looks to be get­ting trac­tion, ac­cord­ing to early in­di­ca­tors from the na­tion's big­gest ci­ties.

Bei­jing home sales vol­umes plunged 41 per­cent year-on-year last month while Shang­hai’s slumped 18 per­cent, China Real Es­tate In­for­ma­tion Corp data showed, after new pur­chase re­stric­tions tight­ened mort­gage lend­ing. Trans­ac­tions fell 50 per­cent in smaller ci­ties.

Ac­cord­ing to Mor­gan Stan­ley, pol­icy mak­ers must bal­ance de­flat­ing prop­erty prices with safe­guard­ing over­all eco­nomic ex­pan­sion. Ef­forts to curb ex­ces­sive gains could cut 0.6 per­cent­age point from 2017 eco­nomic growth, and as much as one point with ag­gres­sive na­tional tight­en­ing.

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