China Economy

Nothing special about this property easing.

Chinese October data showed a little improvement in retail sales as FAI and industrial production ease.

Xi Jinping is lost.

It wasn’t really a good time and sure wasn’t a long time, as Chinese property appears to be slowing once more. Goldman has more. Our refined easing impact tracker indicates that over the 6th week since this easing cycle, we find: 1)aggregated primary/secondary volumes recorded-29%/+1% wow and were 42%/65% higher than pre-easing level (vs.

Chinese credit is still buggered.

The Chinese CPI is going nowhere but down.

With 60-100% Trump tariffs incoming, China is completely stuffed.

So far, sales of new property have not been better than prior stimulus bursts: Sell-side sentiment is not better, either.

Chinese consumers know what market don’t.

The speed of the Chinese property correction is something to behold: The latest data shows some impact from stimmies mostly in top-tier cities: Year to date is back on track for the worst case!

China is growing at 5% and all of that.

TSLombard with the note.

It was exciting for the day. Goldman: The PBOC delivered 25bp cuts to both the 1-year and 5-year LPR today (Oct 21st) from 3.35%/3.85% to 3.1%/3.6%.

China’s Friday growth data was OK with Q3 GDP edging down to 4.6% yoy in Q3 from +4.7.

Why is China having so much trouble fixing its housing market?

The Chinese Housing Ministry is busy giving the latest yawnulus briefing today and it is not going well.

It’s not looking so good for property sales now: There’s a little progress on destocking: Completions are still sagging: Demand has lifted a little. Supply is still stuffed: Long way down to fair value (more like 80% than 16% but let that go).

It’s more of the same for Chinese credit.

It is not at all clear to me that Xi Jinping dislikes deflation.

It was another bust for Chinese stimulus on Saturday when the Ministry of Finance delivered more extend and pretend instead of stimulus or reform: Local governments will be allowed to use special bonds to buy unsold homes, Finance Minister Lan Fo’an announced at a briefing Saturday, without giving an amount.

A chastened Bloomberg has turned on its master: Ever since President Xi Jinping sought to draw a line under China’s slowdown last month, investors have clamored for him to back up monetary easing with a powerful fiscal stimulus to help fuel one of the nation’s biggest stock rallies in years.

No surprise here.