China Q3 GDP Growth Slowed to 4.6%, New Home Prices Extend Decline to 16th Consecutive Month

Li Chen
18 Oct, 2024
Hong Kong

Stock market indexes in Hong Kong and mainland China soared on renewed calls for additional fiscal stimulus following the latest batch of economic data. 

The Hang Seng index and CSI 300 index jumped as much as 3% after investors reviewed updates on retail sales, new home prices, and third quarter GDP growth. 

China's property market, once the main driver of the economy, has now become a drag as home prices continue to fall. 

China's retail sales advanced 3.2% and industrial output rose 5.4% in September, according to separate reports released by the National Bureau of Statistics. 

In addition, China's third quarter GDP expanded at an annual pace of 4.6%, faster than estimated, but economists warned that the world's second-largest economy is still likely to miss its annual growth target rate of 5%.

China's GDP growth slowed from 4.7% in the second quarter after consumer spending growth eased, according to the statistical agency. 

New home prices in September declined 6.1% from a year ago across 70 mainland cities, a larger than 5.7% fall in August. 

Prices fell at the fastest pace since May 2015 and extended losses to the 16th consecutive month, according to the statistics bureau. 

Existing home prices fell on average 1.2% in September across the top-tier cities, faster than the 0.3% monthly decline in August. 

Market sentiment was further bolstered after PBoC Governor Pan Gongsheng suggested that the central bank is ready to act if economic conditions warrant such a move. 

Governor Gongsheng said at a financial forum that the central bank is prepared to lower the cash reserve ratio requirement and other policy rates by the end of the year, depending on the liquidity condition. 

 

China Stock Movers 

The Hang Seng index rose 2.8% to 20,639.04, and the CSI 300 index rose 3.2% to 3,907.37. 

China Vanke increased 4.6% to HK $6.91, China Resources Land jumped 3.8% to HK $26.15, and Longfor Group added 2.2% to HK $12.22. 

Alibaba Group Holding increased 1% to HK $99.50, JD.com rose 1.6% to HK $157.10, and Tencent Holdings advanced 3.9% to HK $428.60.