Monday, December 5, 2011
God forbid an economy slowing down – pump it full of money again
China slowdown spreading, HSBC services PMI shows
China's services sector cooled in November to its weakest growth in three months, an HSBC purchasing managers' index showed on Monday, the latest data portraying an economy slowing quickly and in need of policy support. "With price pressures easing further, Beijing can and should use policies that are targeted on small businesses and service sectors to keep GDP growth at above 8 percent for the coming year,"
Posted by mark @ 10:49 AM (1083 views)
2 thoughts on “God forbid an economy slowing down – pump it full of money again”
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jack c says:
Property prices in China are approaching a “turning pointâ€, the country’s central bank last week admitted for the first time.
Recent declines in real estate prices, property investment levels and land transaction volumes are the reasons for the Pexople’s Bank of China’s changed outlook.
Officials from the bank met the country’s banking regulator, 10 commercial lenders and university academics last month to discuss the problem.
“The turning point of property prices is emerging,†the bank’s report of the meeting says, although it does not recommend any policy action.
Julian Chillingworth, the chief investment officer at Rathbone Unit Trust Management, says the risk of a property bubble in China is a “real issue†for the country, but argues that the situation is “not totally disastrousâ€.
“There’s pockets of big over-valuation there and a number of the housebuilders are setting on a lot of stock so there’s the possibility of quite big cuts in the price of new property in China,†he explains. However, he adds that China will be able to manage its way through its property sector problems as the authorities have effective control of the banking sector.
Last week the China Real Estate Index System showed house prices fell in November for a third successive month. Home prices dropped 0.28%, following a 0.23% decline in October.
Meanwhile, Fen Sung, the manager of the Premier China Enterprise fund, predicts Chinese property prices could drop by up to 20% next year when demand tails off as more social housing is completed.
SOURCE http://www.fundweb.co.uk/emerging/chinese-admit-property-close-to-turning-point/1042713.article
hpwatcher says:
KEEP THE PARTY GOING!