Housing sales in China remain the main problem for the second largest economy in the world. In July, the number of housing sold fell by 28%, which is the biggest drop over this year. It should be noted that in June there was an increase by 33%, which was due to lower prices by developers.
Analysts attributed the current situation restrictions on the issuance of mortgage loans. Earlier, the authorities promised to simplify the process of obtaining a mortgage loan. In addition, investors are disappointed with yesterday's statistics on reduction of the country's industrial growth to 9.0%, which is 0.1% worse than expected.
We maintain a medium-term negative outlook on the Chinese stock market.