Category: OPINION & ANALYSIS

Posted in DATA OPINION & ANALYSIS

Home sales in some cities show signs of improvement amid easing financing, analysts say overall downtrend remains unchanged

After disappointing performance in the traditional peak season of September and October, home sales in some Chinese cities show signs of improvement in November amid easing real estate financing. Analysts believe the overall downtrend in…

Posted in OPINION & ANALYSIS

Chinese official warns challenges for exports, some economist say exports’ contribution to China’s real economic growth may drop to zero

China should not be “blindly optimistic” about outlook of foreign trade amid increasing headwinds, the country’s vice commerce minister said, in the latest warning from the authority over challenges faced by the Chinese economy. In…

Posted in DATA OPINION & ANALYSIS

China’s lithium prices tops 200,000 yuan/tonne for first time ever boosted by strong demand for new energy vehicles

China’s lithium prices jumped above 200,000 yuan per tonne for the first time on record driven by strong demand for new energy vehicles and year-end restocking in downstream industries. According to data from consultancy Shanghai…

Posted in DATA IN-DEPTH OPINION & ANALYSIS

Chinese property developers’ bond issuance picked up significantly in November, nearly all issuers SOEs

Chinese property developers that had struggled in a sector-wide cash crunch finally saw a pick-up in financing this month after authorities repeatedly urged financial institutions to maintain stable lending to the sector and ensure homebuilder’…

Posted in DATA OPINION & ANALYSIS

China’s home mortgage rates in major cities fell further in November, waiting time for loan approval shortened for first time since April

Average home mortgage rate for first-time home buyers in China’s 100 major cities declined to 5.69% in November, down by 4 basis point from the previous month, according to data from Beike Research Institute on…

Posted in OPINION & ANALYSIS

China’s infrastructure investment remains weak, analysts say full-year growth could be lower than 1%

China’s infrastructure investment grew 1% year over year in the first ten months, slowing by 0.5 percentage points from the first three quarters, according to data released by the National Bureau of Statistics (NBS) this…

Posted in DATA OPINION & ANALYSIS

China’s new construction starts tumbled over 30% on year in October amid cash crunch in real estate sector

Chinese property developers have slashed investment amid a sector-wide cash crunch and new construction starts, a leading indicator of real estate activities, slumped by more than 30% in October from a year earlier. According to…

Posted in OPINION & ANALYSIS POLICY & REGULATION

Government think tank met property developers amid cash crunch, research warns possible hard landing in real estate sector

The Development Research Center, a think tank under the State Council, China’s cabinet, held a meeting with mainland property developers and financial institutions in Shenzhen amid market concerns over a deepening cash crunch in the…

Posted in DATA OPINION & ANALYSIS

China’s macro leverage ratio declined further in Q3, “fast deleveraging driven by economic growth is over” – government think tank

China’s macro leverage ratio declined to 264.8% at the end of the third quarter, down 0.6 percentage points from three months earlier, according to a report from the National Institution for Finance & Development (NIFD)…

Posted in DATA OPINION & ANALYSIS

China’s new home prices in major cities grew slowest since Feb 2020 in October, resale home prices fell for first time since June 2020

China’s new home price growth cooled further in October, weighed down by weak demand in major cities amid tight regulations and credit environment for the housing market. New home prices in 100 major cities rose…

Posted in DATA OPINION & ANALYSIS

China’s factory activity contracted for second straight month in October

China’s factory activity contracted for a second consecutive month in October amid surging raw material prices, a shortage of power supply and softer domestic demand. The official manufacturing Purchasing Manager’s Index (PMI) came in at…

Posted in OPINION & ANALYSIS

Commodity price rises last longer than expected, China’s Q4 growth may miss expectations – PBOC advisor

“We had initially thought that the long-term supply/demand fundamentals of commodities hadn’t changed much and most people believe the fast growth in Producer Price Index (PPI) would be short and its transmission to Consumer Price…

Posted in OPINION & ANALYSIS

One third Chinese property developers could see liquidity strained – S&P Global Ratings

One third of China’s property developers could see their liquidity “acutely strained” in the worst case scenario as weaker sentiment and new regulations weigh on their funding sources, said S&P Global Ratings. More than half of its…

Posted in OPINION & ANALYSIS POLICY & REGULATION

PBOC injects 700 billion yuan via reverse repo in five days, analysts say RRR cut basically unlikely this year

Chinese central bank injected 700 billion yuan liquidity to the banking system via open market operations in five trading days. Analyst say the recent operations show that a cut in banks’ reserve requirement ratio (RRR)…

Posted in OPINION & ANALYSIS

China no need to worry about inflation, PBOC should cut RRR in Q4 – government economist

China doesn’t need to worry about inflation and the central bank has room to cut banks’ reserve requirement ratio (RRR) in order to support economic growth, a government adviser said. “China will not have high…

Posted in DATA OPINION & ANALYSIS

China’s top five pig farmers likely lost up to nearly 20 billion yuan in Q3 due to slumping pork prices

China’s top five hog breeders likely recorded a combined net loss of nearly 20 billion yuan in the third quarter of this year amid slumping pork prices and rising feed cost. Muyuan Foods Co. Ltd…

Posted in DATA OPINION & ANALYSIS

China’s GDP growth likely slowed further in Q3 due to energy curbs, slowing housing market, analysts say

China’s economic growth likely slowed further in the third quarter of the year amid Covid-19 resurgence, energy control measures and a slowdown in the real estate sector. The country’s GDP likely grew by 5.1 per…

Posted in DATA OPINION & ANALYSIS

China’s credit growth hit slowest since 2017 in September, analysts expect pickup in Q4

China’s credit growth hit the slowest pace since 2017 mainly dragged by the slowing housing market and sluggish credit demand from the corporate sector. Chinese banks extended 1.66 trillion yuan of new yuan loans in…