After the interest cut and incentives for first homes, now the real estate bubble is also complicating Beijing's efforts to stimulate the economy. In July, house prices in China rose by 0,1% compared to the previous month. This is the second monthly increase in a row and the largest since last May. In fact, the trend was in decline until four months ago, but then reversed course again. Even at the cost of delaying the economic recovery, the Chinese authorities could try to curb the growth in prices in the real estate market that has been going on for two years.
In the second quarter, the Chinese economy grew by 7,6% on a year-on-year basis: the slowest pace for three years. Furthermore, in July exports recorded an increase of 1% compared to the same month in 2011: too low for the global export giant. Finally, new loans hit a 10-month low and industrial production grew at its slowest pace in three years.
