Chinese New Home Prices Grow at Same Pace in September as in August
Early on Monday, markets received some optimistic economic data from China, providing some relief after the disappointing Q3 GDP figures which released last week. According to the NBS, average new home prices climbed 0.5% higher MoM during September, matching the pace of growth seen in August.
New home prices rose 8.4% higher YoY in September, albeit slightly lower than the 8.8% yearly rise seen during the previous months. This is the slowest annual gain in home prices seen in a year. Notwithstanding the slightly weaker YoY change, this data provides some much needed relief for markets that China’s property sector continues to grow despite ongoing trade tensions with the US.
Monday’s positive data dispels the need for stimulus measures in this sector of China’s economy which has otherwise shown signs of weakening on account of the trade war with the US. This sector witnessed a growth in new construction activity, even though property transactions were lower despite this being the peak season for Chinese consumers to purchase new homes.
The Chinese yuan traded weaker against the US dollar early on Monday following the release of this data. At the time of writing, USD/CNH is trading around 7.063, turning bearish as the European session gets underway.
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