China New Home Price Decline, Industrial Production, and Retail Sales Growth Slow

Li Chen
19 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong turned lower in Monday's trading, and investors reviewed the latest flood of economic releases. 

The Hang Seng Index declined 0.5%, and the Nasdaq Composite decreased 0.4%, as investors hoped for the GDP growth to meet the target rate after the release of mixed economic updates. 

Retail sales in April advanced 5.1% from a year ago compared to a one-year high rate of 5.9% in the previous month, the National Bureau of Statistics reported on Monday. 

For the first four months of the year, retail sales expanded 4.7%, amid weak economic consumption as households remained cautious due to weak consumer confidence and a prolonged property market slump. 

China's new home prices declined for the 22nd consecutive month in April, but the decline was the slowest since May 2024, the statistical agency reported. 

New home prices across the 70 largest cities decreased 4.0% from a year ago amid the central government's efforts to stabilize the residential property market. 

New home prices in Beijing dropped 5.0% compared to 5.7%, in Guangzhou declined 6.3% compared to 7.2%, and in Shenzhen eased 3.0% compared to 3.9% in the previous month.  

Meanwhile, prices in Shanghai advanced at a slightly faster pace of 5.9% compared to 5.7% in the previous month. 

Industrial production expanded at a slower pace of 6.1% in April compared to a three-year high rate of 7.7% in March, the statistical bureau said in a separate report. 

Factories expanded operations as U.S. importers and retailers front-loaded ahead of the looming tariffs and trade policy uncertainties. 

Fixed asset investment increased at an annual pace of 4% in the first four months of April, the statistical agency reported.  

April's data provided an early glimpse of the impact of the sharply higher U.S. tariffs on Chinese goods, destabilizing financial markets and bringing trade between the world's largest economies to a near halt. 

 

China Indexes and Stocks 

The Hang Seng index decreased 0.5% to 23,230.95, and the CSI 300 index dropped 0.4% to 3,874.40. 

Midea Group increased 1.7% to HK $79.25, and ZTO Express advanced 4% to HK $149.60 after the two companies were selected to be included in the Hang Seng Index on June 6.