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POLITICAL ECONOMY
China home price rises speed up in November: survey
by Staff Writers
Beijing (AFP) Dec 01, 2013


Chinese home prices rose faster in November than in the previous month, an independent survey showed on Sunday, adding that authorities are likely to introduce further changes to control the lively real estate market.

The average price of a new home in 100 major cities rose 10.99 percent year-on-year to 10,758 yuan ($1,766) per square metre, said the China Index Academy, which compiled the survey.

That was higher than the rises of 10.69 percent in October, 9.48 percent in September and 8.61 percent in August, said the academy, which is the research unit of the real estate website operator Soufun.

High property prices have generated discontent among ordinary Chinese, and Beijing has sought for more than three years to contain their rise, while also promising to provide affordable housing.

President Xi Jinping called a month ago for improved efforts to increase home supply and for more attention on public housing projects, state media reported at the time.

A document pledging a series of reforms, issued after the Third Plenum meeting of Communist Party leaders in mid-November, hinted that a property tax might be expanded beyond its current two cities of Shanghai and Chongqing but did not give a timetable.

"After the Third Plenum, the central committee (of the ruling Communist Party) will set up and improve long-term mechanisms regarding land, taxation, property registration and other aspects," the academy said.

Earlier measures to try to control prices have included restrictions on buying second and third homes, higher minimum downpayments and taxes in some cities on ownership of multiple homes.

China manufacturing index steady at 19-month high: govt
Beijing (AFP) Dec 01, 2013 - China's manufacturing growth in November maintained its strong pace from the previous month to stay at a 19-month high, official figures showed on Sunday.

The purchasing managers' index (PMI) was at 51.4, unchanged from October, the National Bureau of Statistics said on its website.

It was up from 51.1 in September and the highest since reaching 53.3 in April 2012.

A reading above 50 signals expansion while a figure below indicates contraction.

The figure was a further indication that the world's second-largest economy is gradually emerging from a growth slowdown at the start of the year, although analysts have warned that weaknesses remain.

Official data in October showed that China's economy, an important driver of regional and global growth, expanded 7.8 percent from July to September, snapping two quarters of slowing.

Analysts said the jump resulted largely from a government stimulus since late June that included increased rail and urban fixed-asset investment, tax cuts and looser monetary policy.

The official PMI has risen steadily from 50.1 since June of this year.

Meanwhile the preliminary PMI reading for November from HSBC, another closely watched figure, slipped to 50.4 after a seven-month rise.

It was the second-highest reading from the British banking giant since March, down from 50.9 in October.

HSBC economist Qu Hongbin in Hong Kong attributed the drop to "weak new export orders" and the "slowing pace of restocking activities".

The bank's final PMI reading for the month is scheduled to be released on Tuesday.

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