China's Retail Sales Growth Slowed and Property Investment Decline Deepened In November

Li Chen
16 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong declined in Monday's trading after a raft of mixed economic data confirmed the continuing deflationary trend. 

The Hang Seng index decreased 1.1%, and the CSI 300 index dropped 1% after retail sales growth slowed and property market investment decline deepened. 

China's annual retail sales growth in November slowed to 3.0% from 4.8% in October, the National Bureau of Statistics reported over the weekend. 

China's annual fixed-asset investment growth slowed to 3.3% this year to November from 3.3% in the period to October, the statistical bureau reported. 

Fixed-asset investment has been slowing from the peak of 4.5% in March, amid weak earnings growth and persistent worries about a lack of domestic demand growth. 

Real estate investment, closely watched by investors, fell 10.4% between January and November, slightly faster than the 10.3% decline in the ten months to October. 

China's new home prices continued to slide for the 17th month in a row amid a lack of demand and worries about the health of the real estate developers. 

New home prices across the 70 largest cities in China declined 5.4% in November, slower than a nine-year low of 5.9% in the previous month. 

New home sales and prices continue to struggle, despite the Chinese authorities announcing a slew of measures to revive market activities, including lowering mortgage rates for first-time buyers. 

New home prices declined in Beijing by 5.3% compared to 4.9%, in Guangzhou by 9.1% from 10.4%, and in Shenzhen by 7.1% from 8.1% in October, respectively. 

However, new home prices rose in Shanghai by 5%, matching the rate of increase in the previous month.

China's industrial output expanded at an annual pace of 5.4% in November, driven by a faster increase in manufacturing, according to the latest update from the statistical bureau. 

Industrial output increased from 5.3% in October, after manufacturing expanded at an annual rate of 6% compared to 5.4% in October. 

In the first eleven months of the year, industrial production rose 5.8%, driven by increases in manufacturing and mining. 

 

China Stock Movers 

The Hang Seng index decreased 1.1% to 19,760.77, and the CSI 300 index fell 0.5% to 3,911.84. 

CNOOC Ltd. increased 0.8% to HK $17.82, and the energy exploration company agreed to sell its oil and gas assets in the Gulf of Mexico to the UK-based chemical company Ineos. 

Property developers declined after the release of the latest economic data. 

China Vanke Ltd. decreased 2.2% to HK $6.02, China Resources Land Ltd. dropped 2.5% to HK $22.85, and Longfor Group fell 4.6% to HK $10.18.