China's Economy Showed Resilience at Start of 2026, New Home Prices Extended Decline

Li Chen
16 Mar, 2026
Hong Kong

China's stocks lacked direction amid geopolitical uncertainty and growing worries about external shocks to the economy. 

The Hang Seng Index increased 1.2%, and the mainland-focused CSI 300 Index decreased 0.2% as investors debated the latest economic updates.

Retail sales, fixed-asset investment, urban jobless rate, and home prices showed a mixed economic picture over the January-February period from a year ago.

China's retail sales advanced 2.8%, industrial output rose 6.3%, and the jobless rate ticked up to 5.3%, according to the statistical bureau.

The sustained rise in exports and China's large rebate program contributed to the solid economic data. 

As exports became less reliable and more volatile, China's policymakers have been pushing for higher domestic consumer spending, renewable energy-driven projects, and digital products. 

Despite the 11.1% decline in real estate investment, overall fixed investment increased 1.8% in the two-month period, confirming the sustained government spending. 

China's new home prices declined 3.2% from a year ago across 70 cities in the February period, according to the National Bureau of Statistics. 

New home prices fell for the 32nd consecutive month and decreased at the steepest pace since June.

The latest data confirmed the uphill task faced by policymakers in stabilizing the residential housing market, and so far the government's measured and incremental supports have failed to arrest price decline.

New home prices from a year ago in Beijing declined 2.3%, in Shenzhen fell 5.5%, in Guangzhou decreased 5.1%, and in Tianjin eased 4.2%.

However, prices in Shanghai rose 4.2%, matching the pace of increase in the previous month. 

 

China Indexes and Stocks 

The Hang Seng Index increased 1.2% to 25,778.81, and the mainland-focused CSI 300 Index decreased 0.2% to 4,662.84. 

Tech stocks in Hong Kong rebounded amid improving sentiment, and investors searched for bargains. 

Tencent Holdings, Xiaomi, Alibaba Group, and Meituan gained between 1% and 5%.