Government to help real estate developers [Date:07-07-2008] Source: Shanghai Daily [Fond size: L M S]
China’s government is likely to take measures to ease property developers' funding difficulties caused by loan curbs and falling sales, the Economic Observer reported, citing a person it didn't identify.
The People's Bank of China, the Ministry of Housing and Urban-Rural Development and other ministries held consultations on stabilizing the property market, the Chinese-language newspaper cited the unidentified person as saying in its yesterday's edition, according to a Bloomberg News report.
A decline in property prices will erode demand and disrupt economic growth, the newspaper said, citing a National Development and Reform Commission report.
Housing sales in China dipped 0.4 percent from a year earlier to 136.6 million square meters in the first four months, the NDRC report said, according to the newspaper published from Beijing.
Home prices in 70 major cities nationwide increased 9.2 percent in May from a year earlier, the slowest pace in eight months.
This to me is the biggest headline from your post:
"Home prices in 70 major cities nationwide increased 9.2 percent in May from a year earlier, the slowest pace in eight months."
9.2% !!!!!!!! This is a developing country. Growth rates in China will be oustanding for the next few decades. There will be some booms and busts but the Chinese stock market already went through a bust in the last 12 months so we should be heading into another boom in my opinion. EJ is taking away market share and is well positioned to be the market leader in a country where real estate prices could grow at a pace of 5- 10% per year for quite awhile.