Stock Groups

China’s new construction starts plunge as chill spreads across sector By Reuters

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – A man is seen riding a bike next to construction sites near Beijing’s residential buildings, Beijing, China. January 13, 2021. REUTERS/Tingshu Wang

BEIJING (Reuters – China’s September New Construction Starts fell for the sixth month in a row. It is the longest period of monthly falls since 2015. This was due to cash-strapped builders reducing investment and putting a halt on new projects after tighter borrowing regulations.

Based on data from Monday’s January-September release by the National Bureau of Statistics (Reuters), September new construction started fell 13.54% compared to a year ago.

It is the longest downtrend in property prices since the declines of March-August 2015.

After the government relaxed their control on development and purchases, thousands of real-estate firms took out large loans to help build houses. Many of these firms are now facing liquidity problems as tighter regulations have been implemented again. This is made worse by sharply lower demand and tighter restrictions for speculative buying.

According to Reuters calculation based on statistics bureau data, property sales fell by 15.8% in September.

A 3.5% decrease in developers’ property investment in September was another sign of the slowdown. This is the first month decline in this sector since the peak of the COVID-19 pandemic.

The first nine months saw property investments rise 8.8% compared to a year ago, slowing down from 10.9% growth in January-August.

The 11.1% growth in funds raised by China’s property developers was slower than the 14.8% increase seen over the previous eight months.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]