New Home Prices Rise in Most Cities
New home prices rose from a year earlier in 69 of the 70 largest cities in China in May, and new home prices rose in 65 cities if compared with a month earlier, according to the National Bureau of Statistics. The fastest year on year rise was 15.5% and the fastest month on month rise was 2.9%. In terms of second-hand homes, prices rose month on month in 64 cities, with fastest being 1.7%, and prices rose year on year in 67 cities, with the fastest being 12.8%.

China Tops Emerging Apparel Markets
China remains the top apparel market thanks to its size and strong growth in clothing sales, the A.T. Kearney Retail Apparel Index shows, after studying 10 developing countries' attractiveness, development and risks for clothing retail. The study says China's apparel market is driven by booming e-commerce, fast fashion and luxury market. In most emerging markets, e-commerce is less than 1% total sales but it is 6% in China, which is even higher than in the US, the study shows. Apparels account for over 75% of online sales in China.

Property Inventory Flat After Low Holiday Sales
In its latest China Real Estate Developers report, Goldman Sachs says that on a week on week basis, 32 of 34 cities it tracks saw sales volume decrease in the week through June 16 due to a 3-day holiday, with a group median of -33%. On a year on year basis, 24 of 31 cities saw sales volume decrease, with a group median of -26%. Tier-1 cities retreated less than tier-2 and tier-3 cities. In terms of average selling prices, 10 of 11 cities saw week on week increase in the week through June 16. Total inventory for the 13 largest cities was down 0.8% week on week in the week through June 16, leading to the average inventory take-up time decreasing to 10.3 months.

Bank Lending Rebounds Strongly
China's top four state-owned banks extended a combined 217 billion yuan ($35.41 billion) worth of loans from June 1 to June 9, which exceeded that of the whole month of May as large infrastructure projects were rolled out in Guangdong, Shandong, Anhui and Sichuan provinces, according to the Securities Times. The amount also exceeded the 180 billion yuan they lent in June last year. Banks have been aggressive again in issuing short-term wealth management products since the beginning of June after a crackdown in the previous months. Nomura says in its latest China/Hong Kong Financials report that state-owned banks with stable sources of deposits were willing to lend while smaller ones would be under pressure from the funding side and this situation would likely worsen following further interest rate deregulation in the near term.

PBoC Adviser Urges to Free Interest Rates
China should gradually cut the lending rate floor and raise the deposit rate ceiling for fully market-oriented interest rates, China central bank adviser Chen Yulu wrote in an article in China Finance magazine. China plans to make the Renminbi a global currency in 30 years, and the central bank should focus on both inflation and financial stability, instead of only targeting short-term price stability, Chen argued.

HSBC Raises China Solar Installation Estimate to 10GW
5GW utility-scale projects have been approved and will be completed by 2013 in China, according to an analysis of around 100 projects and a cross-check with companies by HSBC. The bank expects 3.6GW of installations by 30 June 2013 from the Golden Sun program, and increases China's annual installation target to 10GW in light of recent supportive policies.

Soybean Imports to Miss Estimates
China's soybean imports are expected to total 63 million tons in the year starting October 2013, lower than official US forecasts of 69 million tons, according to a survey by Bloomberg. An analyst at Shanghai JC Intelligence said that China's demand for soybean meal plunged in April and May due to farmers culling poultry following the outbreak of a new strain of bird flu. As economic expansion cools and the nation cracks down on expensive dinner, demand for cooking oil and meat is slowing down.

You are currently reading words of total words in this article.
To continue reading this article, you must be a subscriber. Log in now..

Finish this article for free.
@2017 China Economy @ China Perspective.
All Right Reserved.
Server SSL Certificate