{"id":1484020,"date":"2024-08-16T10:55:00","date_gmt":"2024-08-16T14:55:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1484020"},"modified":"2024-08-16T10:55:00","modified_gmt":"2024-08-16T14:55:00","slug":"china-home-prices-just-plunged-the-most-since-2015","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/china-home-prices-just-plunged-the-most-since-2015\/1484020\/","title":{"rendered":"China Home Prices Just Plunged The Most Since 2015"},"content":{"rendered":"

China Home Prices Just Plunged The Most Since 2015<\/span><\/p>\n

\n

By George Lei, Bloomberg Markets Live reporter and strategist<\/em><\/p>\n

Home Prices to Slide Amid Elusive Stimulus<\/h3>\n

China\u2019s new home prices in July\u00a0plunged\u00a0the most since 2015 on a year-over-year basis<\/strong>, as a\u00a0gauge\u00a0of homebuilder stocks remain mired in a bear market.\u00a0Shimao Group Holdings Ltd.\u00a0\u2014 among the biggest companies on the index based on weightings \u2014 has seen its share price fall more than 50% over the past three months.<\/p>\n

Meanwhile, remarks from the\u00a0People\u2019s Bank of China\u00a0Governor\u00a0Pan Gongsheng\u00a0suggest policymakers are in no rush to stimulate the economy. That means the country\u2019s battered housing sector will likely struggle to find a bottom.<\/p>\n

July\u2019s residential property sale values were 45% below their four-year average, deteriorating further from June when transaction amounts were 37% below average, according to a Thursday note from JPMorgan. The US bank revised lower its 2024 forecast for residential sale values to -17% year-on-year from -13%, implying a 2%-3% year-on-year decline for the rest of 2024.<\/strong><\/p>\n

<\/a><\/p>\n

The disappointing data, however, doesn\u2019t seem likely to nudge Beijing into action. Since last year, policymakers have drip-fed fiscal stimulus into the slowing economy, stopping short of any big moves. The measured response, on top of the housing market downturn, was largely responsible for a\u00a0surprise moderation\u00a0in fixed-asset investments in the first seven months of the year.<\/p>\n

On Thursday, state media published a pair of interviews with PBOC\u2019s Pan, who hinted that further aid will come to moderate prices but\u00a0emphasized\u00a0\u201cpolicy patience and stability\u201d and pledged to refrain from any \u201cdrastic tightening or drastic easing\u201d of monetary policy. <\/strong><\/p>\n

Pan also reiterated the central bank\u2019s commitment to a\u00a0300 billion yuan\u00a0($41 billion) re-lending program to help fund local-government purchases of unsold homes.<\/p>\n

That program, however, is likely far from enough to fix China\u2019s housing woes. The\u00a0International Monetary Fund\u00a0said the country probably needs\u00a0$1 trillion\u00a0to help complete and deliver properties that are pre-sold yet unfinished, a proposal that was swiftly rejected by Chinese authorities.<\/p>\n

Barclays estimates\u00a0only 4%\u00a0of the PBOC facility had been tapped by the end of June.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 08\/16\/2024 – 06:55<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/china-home-prices-just-plunged-most-2015<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

China Home Prices Just Plunged The Most Since 2015 By George Lei, Bloomberg Markets Live reporter and strategist Home Prices to Slide Amid Elusive Stimulus…<\/p>\n","protected":false},"author":0,"featured_media":1484021,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1484020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1484020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1484020"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1484020\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1484021"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1484020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1484020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1484020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}