China’s property bust deepens

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Cross-posted from Investing in Chinese Stocks.

Real estate investment slowed again in November, this time to 7.59% year-on-year growth. This is the worst monthly growth total since September’s 8.63% growth, and going back in time, these numbers are worse than only a couple of months in 2009, at the depth of the financial crisis. To the charts.

Real estate investment growth rate:

Land purchases by developer (area), the drop was no doubt led by smaller cities, as covered earlier this week in A Tale of Two Tiers:

New Home Sales By Area (yellow) and Yuan (blue):
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Developer capital:

Finally, I show the one month, year on year change in the last chart, which shows investment running below trend:

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.