Chinese property stocks are on track for a 14-year low, as stress in the sector continues to rise amid slumping home sales and deepening debt woes for major developers, per Bloomberg.
— unusual_whales (@unusual_whales) October 18, 2023
Fears that Country Garden will default
Are growing by the day pic.twitter.com/Shl9wCMNca— Longview Economics (@Lvieweconomics) October 18, 2023
China's new normal pic.twitter.com/IsZyD6DLaC
— Global_Macro (@Marcomadness2) October 18, 2023
🇨🇳 Analysis-China's growth surprise is not tempting investors
Full Analysis → https://t.co/Am5pnM0wnh
September data from China offered plenty of welcome surprises, with faster-than-expected growth, falling unemployment and a glimmer of momentum in consumption, but investors… pic.twitter.com/5e0enSwuxy
— PiQ (@PiQSuite) October 18, 2023
Slowing #Chinese #ElectricVehicles demand drives down #battery #metal prices: #lithium, #cobalt and #nickel prices tumble as ‘irrational exuberance’ wears off and surge in supply hits markets, chart @FT https://t.co/6lZx2bNuwC pic.twitter.com/wWI16YMYSW
— ACEMAXX ANALYTICS (@acemaxx) October 18, 2023
1⃣ #China's Jan-Sept #realestate development investment fell by 9.1% y/y to 8.7 trillion yuan.
2⃣🟨Jan-Sept residential housing sales areas -7.5% y/y to 848 million square meters, while 🟦the total sales -4.6% y/y to 8.9 trillion yuan.
3⃣Sentiment 93.44📉
5/ #property #housing pic.twitter.com/cy7IGbiwBs— CN Wire (@Sino_Market) October 18, 2023
As Risks Mount, China Tells Banks to Roll Over Local Government Debts
China is pushing state banks to extend local government debt amid growing concerns over economic instability. Local debt rose to 76% of the GDP in 2022, highlighting financial risks intensified by a property crisis and pandemic fallout. This move may challenge bank operations and inadvertently increase financial recklessness. The property sector’s decline and significant upcoming debt maturities further amplify these concerns.
https://twitter.com/search?q=china%20real%20estate%20crisis%20and%20global%20economy&src=typed_query
In its October edition of the World Economic Outlook, the International Monetary Fund (IMF) reiterated its Asia economy outlook for 2023 at 4.6%. The region reported an economic growth of 3.9% in 2022.
Growth in the Asia Pacific region is projected to rise from 3.9% in 2022 to 4.6% in 2023, unchanged from the April projection. The growth is led by the recovery following China’s post-pandemic-reopening and better-than-expected growth in the first half of 2023 in Japan and India. The IMF particularly highlights the strength of the service sector in these economies.
However, the global lender has lowered its growth projections for Asia Pacific to 4.2% for 2024 from the 4.4% in April amid indications of slowing growth momentum and investment in the third quarter. This reflects weaker external demand especially in Southeast Asia and Japan as well as dwindling real estate investment in China.
Moreover, as the US economy has begun focusing on the service sector, instead of goods, Asia is unable to witness greater demand. The IMF also explained, “…US policies such as the Inflation Reduction Act and CHIPS and Science Act are re-orienting demand toward domestic sources rather than foreign, providing a smaller boost to imports from Asia.”