Research China: The Housing Party Is Over

Published 11/14/2017, 07:37 AM

New research from Danske Bank


We now see clear signs that the Chinese housing market is slowing: October home sales growth was negative for the second month in a row and our leading indicators for housing point to further slowdown over the next year.

However, low inventories will serve as a buffer and should ensure that construction does not go into a hard landing.

The housing slowdown will weigh on global metal markets and China will move from an inflationary global force over the past two years to a deflationary force again.

Nordic export companies exposed to the Chinese construction sector should expect weaker growth rates in 2018 following two robust years in 2016 and 2017. Nevertheless, the slowdown of housing is desirable to ensure a soft landing now rather than a hard landing later.

To read the entire report Please click on the pdf File Below:

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