Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Property

China property prices rise again but more slowly after new restrictions


Posted on November 18, 2016

New residential property prices in China grew faster in October despite a slew of restrictions on purchases, but the rate of growth appeared to slow noticeably in a number of top cities.

The average price for new residential buildings rose 12.3 per cent in October year on year, according to a weighted average from Reuters based on data from the National Bureau of Statistics. That is up from a rise of 11.2 per cent in September.

That was a less marked jump than the 3 percentage point rise from August to September, however, suggesting recent curbs to property purchases may be having some effect.

That possibility was backed up by a list of top-tier cities the statistics bureau began tracking recently which showed month-on-month prices had fallen – albeit marginally – in Beijing, Tianjin, Shanghai, Shenzhen, Xiamen and Zhengzhou during the second half of the month. Yet when October was taken as a whole, only Shenzhen showed a real month-on-month price fall.

Countrywide, month-on-month prices rose in 62 out of 70 major cities last month, were unchanged in one and fell in seven. Wuxi, in coastal Jiangsu province, retained the top spot for a second month with growth of 4.9 per cent, but that was markedly lower than the previous month’s rise of 8.2 per cent. In a close second was Changsha, capital of Hunan province, with growth of 4.5.

Price growth in top cities was slower, however, with Beijing, for instance, reporting a rise of only 0.5 per cent from the previous month, compared to 4.9 per cent in September.

In year-on-year terms prices rose in 65 cities and fell in five. The cities of Hefei and Xiamen once again led the pack with growth of 48.6 per cent and 45.9 per cent, respectively. But many others cities that have featured prominently in recent months remained relatively undaunted by the new popularity of purchasing curbs, as prices remained substantially elevated from a year earlier.

The continued, albeit slower growth in prices tracks with recent data showing real estate investment ticked upward in October and sales had registered barely any negative impact from the new restrictions.