Wednesday, January 4, 2012

China's housing market decline may be a positive sign

China's housing market continues to decline. The chart below from ISI represents the 100-city average weighted by total floor space of each city. This is a 4th straight decline.

The gradual property market decline should actually be a positive for global asset prices because it gives the Chinese authorities the room they need to accelerate stimulus by loosening lending restrictions and reserve requirements. That is why China will continue to target speculation in the housing market.
Related Posts Plugin for WordPress, Blogger...
Bookmark this post:
Share on StockTwits