China's Hainan Province Eases Mortgage Rules To Revive Home Sales: 'Housing Bottom Not In Sight,' Analyst Says
Portfolio Pulse from Piero Cingari
China's Hainan province has reduced the minimum down payment for first-time homebuyers to 20% from 25%, following similar measures in Beijing and Shanghai to boost the housing market. Despite these efforts, the overall real estate market faces challenges, with new-home sales remaining subdued. Goldman Sachs' chief China economist, Hui Shan, indicates that the housing downturn in China is ongoing, with real house prices declining by 16% since Q3 2021. The Hong Kong Hang Seng Index, related to offshore Chinese stocks and tracked by the iShares MSCI Hong Kong Index Fund (EWH), dropped over 1% after a previous surge.
February 19, 2024 | 7:30 pm
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The iShares MSCI Hong Kong Index Fund (EWH) experienced a drop of over 1% following a surge, amid ongoing challenges in China's real estate market and policy interventions.
The drop in EWH's price is directly related to the broader challenges in China's real estate market, as indicated by the ongoing downturn and policy interventions in places like Hainan. Given the fund's exposure to offshore Chinese stocks, developments in China's housing market can significantly impact investor sentiment and the fund's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80