Chinese real estate hit by slowest growth in six quarters

16 Apr 2014

1

China's growth is down to the weakest pace in six quarters, pulling down property construction, as leaders came under pressure to stick to their commitment to keep credit reined in. Meanwhile risks of a deeper slowdown increased.

Chinese real estate hit by slowest growth in six quartersGross domestic product was up 7.4 per cent in the January-to-March period from a year earlier, according to the statistics bureau as  against the 7.3 per cent median estimate in a Bloomberg News survey of analysts.

Industrial production as also fixed-asset investment lagged projections.

The weakest first-quarter property-investment growth since 2009 indicates tight credit and faltering demand adding to economic and default dangers as premier Li Keqiang engaged risks from shadow banking and local-government debt.

Commentators say, a deeper slowdown would see increasing pressure on leaders to expand stimulus or limit the pace of changes aimed at giving market forces a bigger role in the world's second-largest economy.

Bloomberg quoted Ding Shuang, senior China economist at Citigroup in Hong Kong as saying the property market was probably the biggest risk this year, as this was not a trend the government could fully control with policies.

According to Ding, while the government might refrain from large-scale stimulus, ''targeted easing'' might continue this quarter, especially in real estate.

Meanwhile according to the statistics bureau, China's economic growth in the first quarter was within range, and the employment situation remained stable with inflation under control.

According to bureau spokesman Sheng Laiyun, although economic growth slowed in the first quarter, in general, it stayed in a reasonable range.

The comments came at a media briefing after the release of data which showed the economy grew 7.4 per cent in January-March, slightly above expectations for 7.3 per cent growth.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers