Chinese economy cools as lending and pollution brakes applied

Wednesday, 15 November 2017, 07:44:39 AM. A significant slowdown in the property sector appears to spreading to other parts of the world's second biggest economy.
Photo: Tougher credit conditions hit China's residential property market and cooled the broader economy in October (Flickr: Tauno Tõhk / 陶诺) The one-two punch from authorities to slow lending and control air pollution seems to have knocked the stuffing out of the Chinese economy last month. All three key monthly economic indicators — industrial production, fixed asset investment (FAI) and retail sales — fell significantly from September's reading, and all were below market expectations. While infrastructure spending has helped keep the economy growing at a fairly robust 6.8 per cent this year, the slowdown in FAI — a proxy for infrastructure and property investment — suggests the tightening of the credit tap is having an impact. Property investment grew at 5.6 per cent over the month, down from the more than 9 per cent growth in September. Sales volumes in the real estate sector were down more than 8 per cent on this time last year, following a 5 per cent drop in September. The net area of floor space 'starts' declined 4.4 per cent in October, after only a moderate rise in September. This follows earlier data showing new loans issued by China's banks hit a one-year low in October. While the size of the slowdown surprised markets, the National Bureau of Statistics was quoted by news agencies as saying, "economic growth remains in a reasonable range." MeasureOctoberMarket ForecastSeptemberIndustrial production (YoY)+6.2pc+6.3pc+6.6pcFixed asset investment...Read more
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