China’s new housing starts turn negative

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Courtesy of Also Spracht Analyst.

The chart below shows that new housing starts (residential) year-to-date in terms of floor area is below what it was in the same period of last year. This points to a negative impact on the GDP growth figure and not only because real estate investments contributes roughly 10% of GDP, its impact on other related industries such as steel and cement will be, although not easily quantifiable, very negative: