Trade-In Program Boosted China's Retail Sales, New Home Sales Struggled In May

Li Chen
16 Jun, 2025
Hong Kong

Stocks in China and Hong Kong struggled to advance on Monday, and investors reviewed the latest batch of economic data. 

The Hang Seng declined 0.1%, and the mainland-focused CSI 300 index decreased a fraction after a batch of mixed economic data sapped market enthusiasm. 

China's retail sales rose 6.4% from a year ago in May, the largest pace of increase since December 2023, the National Bureau of Statistics reported Monday.

In addition, industrial output advanced 5.8% in May, a slight decline from 6.1% in April, the National Bureau of Statistics reported Monday. 

China's economy has withstood several economic shocks, as the central government extended its trade-in program to sustain consumer spending. 

China's fixed-asset investment increased 3.7% in the first five months to May, slower than 4% in the period between January and April.

New home sales by area declined 2.9% in the first five months, following a 2.8% decrease in the first four months, according to data released by China Real Estate Information Corp. 

Sales at the top 100 residential real estate developers fell 7.1% in the first five months to May, faster than the 6.7% decline in the January–April period. 

Moreover, the reported jobless rate eased slightly to 5.0% in May from 5.1% in April, the statistics bureau reported. 

China's unemployment rates are viewed with a higher level of skepticism because of past inconsistencies and a lack of reliable data-gathering practices. 

Most international economists estimate China's jobless rate is closer to between 7% and 9%, but the precise data are hard to come by.

 

China Indexes and Stocks 

The Hang Seng index decreased 0.1% to 23,864.20, and the mainland-focused CSI 300 index dropped 0.07% to 3,861.67. 

Residential property developers advanced, despite the faster decline in sales of new homes in the first five months to May. 

Longfor Group Holdings Ltd. increased 1.9% to HK $9.93, China Overseas Land & Investment increased 0.3% to HK $13.94, and China Vanke Co. Ltd. added 3% to HK $5.09.