China Markets Show Mixed Signals as Trade Talks Progress and Property Sector Slumps
China’s latest economic indicators present a complex picture, with stock markets rallying on eased trade tensions while the property sector continues to weaken. International institutional investors remain underweight on Chinese assets despite the potential for a market rerating, according to recent surveys.
Divergent Economic Indicators Emerge in China
Recent data from China reveals contrasting trends across different sectors of the economy, with equity markets showing strength while the property market continues to struggle. According to reports, new home prices declined -0.41% month-over-month in September, with first-tier cities experiencing even steeper drops. Guangzhou saw prices fall -0.6%, while Shenzhen experienced a -1.0% decrease, indicating persistent weakness in the real estate sector that analysts suggest could prompt government intervention.