Hardly any upside surprise in December/fourth-quarter data could explain the PBOC’s decision of holding policy rates on Monday. The fourth-quarter GDP missed estimate and consumer spending remained sluggish in December.
Following on James’ analysis on housing market, there appears no end in sight to China’s property crisis based on the official data released today:
Home prices fell most in almost nine years
The number of cities that reported a drop in prices increased to 62, from 59 in the previous month
Crude steel and cement production were down 14.9% and 0.9% respectively in December
Sales in household appliances were almost unchanged
Furniture sales were up but office supplies were down by 9%