August 15, 2024
China’s new home prices fell by 4.9% in July over the year which is the record drop since 2015. Over the month the indicator fell by 0.7% in June (announced before) showing acceleration of diving for the last three months (see chart).
As can be seen China’s huge government’s stimulus does not help slumping housing sector which shows negative dynamic from the June 2022 (see chart).
Taking into account the huge share of housing market in the economy its troubles have a potential to translate into the dynamic of GDP which the government targets to rise by 5% in this year.
⭐️Summary:
Very weak data shows the large part of the economy is in trouble. It may have its negative effect on the dynamic of the economy as whole