China New Home Prices Swell, Hints at PBOC Stimulus Working
- New home prices rose in 47 out of 70 cities tracked in Feb. (MoM) vs 38 in Jan.
- Real estate in Shenzhen rose 56.9% (YoY) and 20.6% in Shanghai
- News outlets are concerned that the PBoC stimulus may stoke a speculative bubble
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China saw real estate inflation in 47 out of the 70 cities monitored in February (MoM) as compared to 38 in January. New home prices swelled in Shenzhen and Shanghai on a yearly basis by 56.9 percent and 20.6 percent, respectively.
The jump in new home prices may suggest the PBoC’s stimulus is working its way into the real estate market. Financial news outlets have expressed concern that China should be cautious in its accommodative measures so that it does not create a speculative housing bubble.
In other news, the Chinese Central Bank moved its official Yuan fix Friday morning to 6.4628 versus the 6.4961 level the day before. This 0.51 percent increase is the sharpest since November and is the second largest jump in 10 years.