Home prices in China jump but retail pace slows

Business | Reuters 18 May 2021

Home prices in mainland China jumped but retail sales grew slower than expected in April.

Average new home prices in China's 70 major cities grew 0.6 percent in April from a month earlier, according to Reuters calculations based on data released by the National Bureau of Statistics, the quickest pace since August 2020 and a notch up from a 0.5 percent gain in March.

New home prices in first- and second-tier cities rose an average of 0.6 percent month-on-month in April, of which Chongqing Municipality and Guangzhou city are top contributors. On a year-on-year basis, growth in new home prices rose to an eight-month high of 4.8 percent, compared with 4.6 percent in March.

Meanwhile, China's retail sales rose 17.7 percent, weaker than a forecast 24.9 percent uptick and the 34.2 percent surge in March. Factory output grew 9.8 percent in April from a year ago, in line with forecasts but slower than the 14.1 percent surge in March.

In other news, the People's Bank of China said in an online statement it was keeping the rate on 100 billion yuan (HK$1.21 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions steady at 2.95 percent from previous operations.

The central bank also injected another 10 billion yuan worth of seven-day reverse repos into the banking system on the day.

With 20 billion yuan worth of reverse repos in maturity, the PBOC drained a net 10 billion yuan yesterday.

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