Property investment further accelerates
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. (Photo 1)