It seems that the economic problems in China have intensified with the decrease in sales of new homes, adding new stress to an economy that is already struggling. It is worth noting that the struggles have survived technological stocks, which continue to rise despite the total factors.
according to ReutersThe data provided by the Chinese National Bureau of Statistics indicate that the prices of real estate, investments and sales have resumed their downward direction after a short period of stability.
The China government interfered with the real estate market
The prices of real estate in China have been a fixed decline since 2021 after the government’s campaign caused developers in the liquidity crisis, abandoned projects, and cautious buyers. Many have not changed since then, despite the recent government intervention.
The government was active in trying to install the real estate market, including in its 2025 agenda. It seems that government efforts have been paid for about two months because the prices were relatively fixed.
However, modern data from Chinese real estate information company He explains that the market has lost these small gains with a decrease in new homes sales. While the government is working to normalize home prices, there is also a question of price monitoring that local governments usually impose.
These declines are not only attributed to governmental procedures, with demographic transformations and low students that cause an abundance of unproductive homes, and low income that can be eliminated due to stagnant income.
While analysts believe that government efforts will cause a positive change in directions, other factors threaten to change occurrence soon.
US tariff adds pressure
In addition to its economic problems, the United States provided 25 % tax on Chinese car imports, from another tariff, accumulating more pressure on China.
China has also averaged by imposing its own tariffs on goods from the United States, which led to the connection of bilateral trade relations between the two countries. The Trump administration is expected to offer its reprisals on April 2, adding more pressure on the Chinese economy.
These concerns about the impact of definitions on the behavior of the Chinese consumer and its manufacturing sector have sparked.
Increasing technology in China fails to revive the broader markets
On the other side, Chinese technical stocks He was in the direction of Deepseek earlier in the year. Despite the constant success of these Chinese technical stocks, they have not had a significant or non -impact on emerging markets. This is a difference from the natural trend where growth in Chinese stocks has an increased impact on other emerging market stocks, which have been relatively stagnant.
The current impact of the gathering of the Chinese stock market does not feel in the entire Chinese market and has not really improved the economy, as analysts attribute its rise to the current surrounding technology, especially artificial intelligence.
According to analysts from UBS Group AG in London, the current technical boom is not the same as the typical Chinese boom that occurred in 2009, 2016 and 2020 and influenced emerging markets. It was reported that since August 2024, the MSCI China index has increased by more than 30 %, while the same cannot be said to emerging markets, which has decreased by 7 % since then.
Historically, strong growth in Chinese stocks had a growth impact on other emerging markets. It will be a historical example between 2009 and 2010, as it increased by 63 % in Chinese stocks increased 100 % in emerging market stocks. A similar trend is seen between 2016 and 2017, as Chinese stocks increased by 50 % and the outline of emerging markets increased by 46 %.
Before the technology support caused by the launch of the Deepseek model, Chinese stocks saw the last time a slight increase in September 2024, thanks to the general economic motivation of the Chinese government.
According to investment analysts, the new trend of China represented in the superiority of its emerging markets may last longer than expected or required. They also expressed their concerns about the effects of the American definitions on the Chinese stock market.
An unconfirmed look at the Chinese economy
While there are concerns about the impact of these definitions on consumer behavior in various sectors, such as housing, investors outside China also take a hint, and this may affect the growth of the Chinese stock market negatively and means more losses in emerging markets.
The ideas shared by Rohit Chopra, a wallet manager at Lazard Asset Management, indicate that some money expresses little confidence in Chinese stocks that return to a quick return and already get rid of their Chinese holdings.
While local experts point out that the Chinese market will witness a form of growth with the help of government intervention, they also point out that the growth curve will not be sharp. How to turn on these predictions to look at the data available at the present time, given American tariffs and more imminent definitions.
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