China began the week-long National Day holiday on Tuesday, October 1.
In the week before the start of the holiday, the Chinese authorities announced a set of economic stimulus measures. Some measures were specifically directed at the real estate sector, such as:
- Reductions in down payment rates
- Reductions in mortgage rates
- – Easing restrictions on purchasing real estate
State broadcaster CCTV reported a statement from the Ministry of Housing and Urban-Rural Development on Saturday that said the measures had been a success. The statement pointed to the number of people visiting homes and sales offices, as a reflection of purchase intentions, along with increased participation in sales promotions.
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The data these officials cite is not sales, but I think we can give them some benefit of the doubt in increasing activity. I’ll be waiting for more solid data. Chinese stock markets did not wait for more strong data, as they recorded historic gains in the week before the holiday, and Hong Kong markets, which reopened on Wednesday of last week, added additional gains.
I’m not at my regular computer posting a chart, so here’s a quick chart from CNBC. Shanghai Composite over the past year. You can see how high it was in the last week of September.
Chinese markets will reopen on Tuesday, October 8.
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