Following remarks from Xi Jinping during China’s 19th Party Congress in October highlighting that “houses are built to be inhabited, not for speculation,” policies implemented to reduce rapid price gains continue to show success. According to figures unveiled by the National Bureau of Statistics China overnight, the average new home price in a survey of 70 major cities rose by a reduced rate of 5.10% compared to the 5.40% recorded in October and 12.60% reported a year prior. Most interestingly, prices declined in both Beijing and Shanghai during the latest measuring period, contracting by -0.20% apiece. Although gains in housing prices have now extended their streak for 26-straight months, the latest figure was the most sluggish pace since March of 2016, indicating that the measures imposed last March are successfully tackling the acceleration in prices. In the meantime, USDCNH is higher on the session following the data, retaking the 6.6100 level.
Chinese Home Price Gains Taper
Daily Analysis - 18/12/2017