China’s mainland stocks went through sort of a bender today.
Initially energized by a better than expected Chinese PMI result which assuaged concerns that China’s economy was slowing fast, (It appears to be slowing at just the right pace so far, according to manufacturing) the market was whip-sawed by fresh harsh words for the local property market.
China’s banking regulator will strictly implement the central government’s macroeconomic policies that aim to curb soaring housing prices, an official said Tuesday.
Ye Yanfei, deputy head of the Statistics Department of the China Banking Regulatory Commission (CBRC), said the CBRC will restrain speculative property investment and support the building of affordable housing while controlling risk.
China’s housing market and lending to the property sector are crucial to the national economy and people’s livelihood, as well as to the stable and steady development of the nation’s banking sector, Ye said at a seminar in Beijing.
Ye also said the CBRC has pushed lenders to test the impact of falling house prices, although the regulator said earlier that hypothetical scenarios examined in stress tests do not herald any change in policy
You can see below via a chart of the CSI 300 how the market started strong, and then slumped through the day, as renewed property tightening concerns emerged. The rest of Asia was able to hold on to gains however.
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