China began its week-long National Day holiday on Tuesday October 1.
In the week leading up to the holiday beginning Chinese authorities announced an array of economic stimulus measures. SOme of the measures were aimed specifically at the property sector, such as:
- reductions in down-payment ratios
- reductions in mortgage rates
- an easing in property buying restrictions
China's state broadcaster CCTV reported a statement from the Ministry of Housing and Urban-Rural Development on Saturday saying that the measures are having success. The statement cited the number of people visiting houses and sales offices, as a reflection of buying intentions, along with increased participation in sales promotions.
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The data these officials are citing is not sales, but I think we can give them some benefit of some doubt of increased activity. I'll be waiting for more solid data. Chinese equity markets have not been waiting for more solid data, they recorded historic gains in the week leading to the holidays and Hong Kong markets, which reopened on Wednesday last week, have added gains also.
I'm not in front of my regular PC to post a chart, so here's a quick one from CNBC. Shanghai Composite over the past year. You can see the extent of the rally in the last week of September.
Chinese markets reopen on Tuesday, October 8.
