China began a week-long National Day holiday on Tuesday, October 1st.
In the week before the holidays began, Chinese authorities announced a series of economic stimulus measures. Some of the measures are aimed specifically at the real estate sector, including:
Lower down payment ratio Lower mortgage interest rates Relaxation of real estate purchase restrictions
On Saturday, Chinese state broadcaster CCTV reported a statement from the Ministry of Housing and Urban and Rural Development calling the measure a success. The statement cited an increase in the number of people visiting homes and business offices and participation in sales promotions as a reflection of purchasing intent.
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The data these officials are citing is not sales figures, but I think they can be given some benefit of the doubt that activity is increasing. We are waiting for more solid data. The Chinese stock market was not waiting for more solid data. Hong Kong markets, which posted historic gains in the week leading up to the holidays and reopened last Wednesday, also added to gains.
Since I’m not at my usual PC and posting charts, here’s a quick chart from CNBC. Shanghai Comprehensive in the past year. You can see the extent of the rise in the last week of September.
Chinese markets will reopen on Tuesday, October 8th.
