Chinese Industrial Profits Rise Again Amid Ongoing Real Estate Slump
Chinese industrial profits saw a modest increase for the second consecutive month in May, rising 0.7% year-on-year, down from April’s 4.0% growth. This slowdown signals continued economic headwinds driven by the persistent real estate downturn, according to the latest data from the National Bureau of Statistics.
Beijing Eases Property Buying Rules to Combat Crisis
In an effort to mitigate the prolonged real estate crisis, Beijing has lowered mortgage interest rates and down payment requirements for homebuyers. First-time buyers will now need a minimum down payment of 20%, down from 30%, while second-home purchases will require 30% or 35%, depending on location, down from 40% and 50%. Additionally, commercial mortgage rates have been cut by up to 55 basis points.
It still remains to be seen how China sells ghost town houses to public.