Loading ...Chinese Home Prices Decline In Record Number Of Cities, Average Sale Price Has Biggest Drop Since Lehman
Tyler Durden’s pictureSubmitted by Tyler Durden on 07/18/2014 09:00 -0400
China’s attempts to “reign in” its credit and housing bubble (to “taper”, if you will) and to deleverage its financial sector, so widely trumpeted over a year ago just before its banking system nearly locked up overnight, are rapidly becoming the biggest joke in finance, just after anything relatedd to the Fed of course. Sure enough, confirming that the reason for the epic surge in Chinese lending over the past few months (a topic we will touch upon later) was making sure that the all important housing bubble doesn’t pop (at least not yet, recall: in China housing is a far more critical bubble than the stock market which is widely ignore by most as a “wealth effect” mechanism), was data released overnight showing how Chinese home prices reacted following the last few months of credit conservatism and destruction courtesy of the commodity funding deal rehypothecation scandal. In short: not good.