New home price movement for all China 9n November, Reuters provides the calculations.
- -0.2% m/m (prior month -0.3%)
- -1.6% y/y (prior -1.6%)
China's property sector has crumpled under an enormous debt load. The CCP have moved to provide support packages as the sector is a key driver of domestic demand.
Earlier we had an injection of funds into the bank system via:
PBOC conducts 650bn yuan one year MLF at an unchanged rate of 2.75%
The net injection is 150bn, which will be positive at the margin. There are plenty of other support packages in train alongside. ASnd, the reopening of the economy after the protracted COVID restrictions is a positive also. In will not be a straight line up for the Chinese economy ahead, but its going to be better than what the people have been through the past more than 2 years.
