China’s Housing Drops in October But Easing Signs Appear

China’s home prices posted a second consecutive annual drop in October, although monthly figures showed an improving sequential trend.
New home prices fell 2.6 percent in October from the year-ago period, after dropping an annual 1.3 percent in September, according to Reuters calculations of official data released by the National Bureau of Statistics Tuesday.

On-month, prices fell 0.8 percent, their sixth straight fall. But the extent of the declines appears to be easing: prices fell a monthly 1 percent in September after the 1.1 percent fall in August.

Shares of developers fell on the news, weighing on the Shanghai Composite, which traded 0.4 percent lower Tuesday.

Economists have cited a property bubble as the biggest risk to China’s economy. The sector contributes more than 15 percent to the world’s second-largest economy and impacts more than 40 other sectors from cement to furniture.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza