China Economy Forum

[beijingwalker]

China August industrial profits rise nearly 20%, fastest in 3 years
Tuesday, 27 Sep 2016 | 1:28 AM ETReuters

Profits earned by China's industrial firms in August grew at the fastest pace in three years helped by rising sales, higher prices and lower costs, pointing to strengthening economic activity.


The world's second-largest economy has shown recent signs of stabilization, propped up by a housing boom and government spending, but growth has been patchy with companies in some sectors such as steel not faring as well due to excess capacity.

Profits in August jumped 19.5 percent to 534.8 billion yuan ($80.2 billion), the National Bureau of Statistics (NBS) said on Tuesday, the fastest monthly rate since August 2013. Annual profit growth was 11 percent in July.

Industrial profits in August have shown positive changes and government policies continue to produce effects, NBS official He Ping said in a statement accompanying the data.

He said rapid growth in August was also boosted by a low base of comparison last year.

China's traditional industries continue to struggle, particularly in sectors hobbled by overcapacity, He said.

The profit data by sector, however, highlights the uneven stabilization.

Manufacturing profits rose 14.1 percent from a year earlier while mining industry profits fell 70.9 percent.

Total profits for the January-August period rose 8.4 percent from the same period a year earlier, compared with a 6.9 percent rise in the first seven months of this year.

Chinese industrial firms' liabilities at the end of August were 4.6 percent higher than at the same point last year.

The data covers large enterprises with annual revenues of more than 20 million yuan from their main operations.

Bank of America Merrill Lynch highlighted risks to corporate earnings in a recent report on listed firms.

"We think a housing bubble in top cities is a genuine risk, and stimulus may weaken due to a renewed focus on the supply-side reform; we expect earnings to come under significant pressure again reasonably soon," it said.

The Asian Development Bank on Tuesday increased its growth forecast this year for China to 6.6 percent from 6.5 percent, and for 2017 to 6.4 percent from 6.3 percent, citing fiscal and monetary stimulus measures.
http://www.cnbc.com/2016/09/27/chin...rofits-rise-nearly-20-fastest-in-3-years.html

 

[ahojunk]

China's manufacturing activity expands again, non-manufacturing PMI rebounds
2016-10-01 09:58:12 Xinhua Web Editor: Fei Fei

Chinese workers assemble Ford Focus cars on the assembly line at the auto plant
of Changan Ford in Chongqing, China, 2 November 2010. [Photo: Imagine China]​

China's manufacturing Purchasing Managers' Index (PMI) stood at 50.4 in September, unchanged from August, while the non-manufacturing PMI increased to 53.7 from the previous month's 53.5, official data showed Saturday.

The manufacturing PMI has stayed above the 50-point mark that separates expansion from contraction for the second month in a row, while the non-manufacturing PMI has stood above the line for seven consecutive months, according to the National Bureau of Statistics (NBS).

NBS statistician Zhao Qinghe said both production and demand showed signs of stabilization in the manufacturing sector, while the non-manufacturing sector is gradually picking up steam as enterprise confidence builds strength.

The manufacturing sub-index for production moved up to 52.8 from 52.6 in August, rising for the second consecutive month. The index for new orders was slightly down from the previous month, but remained in expansionary territory.

The non-manufacturing sub-index for new orders rose to 51.4 in September, its highest level in 2016, indicating demand in the sector is picking up.

The data came on the heels of the Caixin manufacturing PMI, a private gauge of manufacturing activity, which showed the index was in expansionary territory for the second time since February 2015.

The Caixin manufacturing PMI edged up to 50.1 in September from 50 the previous month, according to a survey conducted by financial information service provider Markit, sponsored by Caixin Media.

The official PMI samples 3,000 large enterprises in China. The Caixin PMI samples 420 small and medium-sized manufacturing enterprises and is relatively volatile due to its small sample size and the dominance of smaller enterprises.

 

[ahojunk]

Chinese enterprises operating overseas contribute greatly to global development: report
2016-10-01 11:41 | Xinhua | Editor: Li Yan

Chinese enterprises operating overseas have made remarkable contribution to hosting countries and global development, according to a report released here Friday.

The report, jointly released by China and the United Nations Development Program (UNDP), interviewed 254 Chinese companies, of which 36 percent are state-owned corporations and the rest are private.

These Chinese firms have paid a total of 31.2 billion US dollars in taxes to their hosting countries or regions, a 62.9-percent jump from 2014, it said.

They have also provided jobs to 1.23 million foreign employees in 2015, 392 thousand more than the previous year, according to the report, entitled 2015 Report on the Sustainable Development of Chinese Enterprises Overseas.

It provides critical data related to Chinese companies' investment, projects and people working overseas as well as policies adopted by the Chinese government to support these activities, and outlines progress made by these companies in the areas of corporate governance as well as their economic, environmental and social performance in overseas operations.

The report also showed that half of these Chinese companies have netted profits while more than 20 percent ended last year in losses.

Shen Haixiong, a senior official from China's Guangdong Province, said at the launch event of the report that currently China's enterprises have encountered great opportunities to go global and to engage in business operation in overseas markets.

While delivering a keynote speech, Shen said in recent years, many Chinese companies have been engaged in overseas investment and have achieved win-win cooperation with host countries, such as Huawei, a Chinese telecom company.

Xu Haoliang, assistant administrator of the UNDP, said that the report shows that Chinese companies and the Chinese government want to take a new approach on development.

"UNDP believes in the potential of the Chinese private sector to contribute to sustainable development around the world," he added.

 

[grey boy 2]

China sets example for world to tackle extreme poverty: World Bank official
(Xinhua) 09:38, October 03, 2016

China's success in reducing poverty has driven the poverty reduction globally, and China could set an example for the rest of the world to end extreme poverty, said a senior World Bank official.

"Much of the success in poverty reduction globally has actually been driven by China's incredible success in reducing poverty," said Ana Revenga, senior director on poverty and quality at the World Bank, at a teleconference on the institution's inaugural report Poverty and Shared Prosperity 2016.

The new report which was released on Sunday showed that nearly 800 million people lived on less than 1.9 U.S. dollars a day in 2013. That is around 100 million fewer extremely poor people than in 2012.

According to the report, from 1990 to 2013, the extremely poor fell from 35 percent of the world' s population to just under 11 percent of the world' s population.


The progress on extreme poverty was driven mainly by East Asia and Pacific, especially China, Indonesia and India, said the report.

Despite of the good news, "there is no room for complacency," said Francisco Ferreira, senior advisor to the Development Research Group of the World Bank.

The report showed that half of the world's extreme poor now live in Sub-Saharan African and another third live in South Asia.

"The pockets of poverty that remain will become increasingly harder to reach and address," said Ferreira.

The report forecasted that the world would be unable to achieve the goal of ending extreme poverty by 2030, even under optimistic scenarios for growth with no change in inequality. The World Bank set a target of reducing the poverty headcount ratio from 12.4 percent globally in 2012 to 3 percent by 2030.

China has been a lesson to the rest of the world on how to tackle extreme poverty in a fast way, said Revenga. "If anybody can show the world how to do that last mile (of ending extreme poverty), it probably is China," said the senior official.

The report also found that in 34 of 83 countries monitored, income gaps widened as incomes grew faster among the wealthiest 60 percent of people than among the bottom 40 percent, despite that within-country inequality has been falling in many places since 2008.

The World Bank called on countries to adopt policies, such as early childhood education, universal health coverage, universal access to quality education, rural infrastructure construction, progressive taxation, cash transfers to poor families, in order to create growth and enable the poorest to take advantage of these opportunities.
http://en.people.cn/n3/2016/1003/c90000-9122826.html

 

[ahojunk]

China is going shopping in the US.

=========
China sees record-high direct investment in U.S. in 2015
2016-10-04 17:20:45 Xinhua Web Editor: Min Rui

A file photo shows the Chinese currency Yuan and U.S. dollars.[Photo: Baidu]​

China's direct investment in the United States reached a record high of 8 billion U.S. dollars in 2015 as Chinese firms continued to expand overseas.

Investment in the United States accounted for 5.5 percent of China's total outbound direct investment (ODI), with the manufacturing sector attracting the most capital, according to a report by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.

U.S. manufacturing drew 4 billion dollars of investment from China last year, accounting for half of the total Chinese investment and up 122.2 percent year on year.

During that period, Chinese companies carried out 97 mergers and acquisition, worth 13.1 billion dollars, according to the report.

Of existing Chinese investment in the U.S., manufacturing accounted for the largest share -- 26.3 percent -- with a total value of 10.7 billion dollars.

The majority of that investment went to car making, ferrous metal smelting, medicine and transport equipment manufacturing, the report said.

China is now the world's second-largest source of outbound investment, exceeded only by the United States.

The country's total non-financial ODI hit 146 billion dollars in 2015, up 18.3 percent year on year and exceeding the 136 billion in foreign direct investment it received, making it a net capital exporter for the first time.

 

[ahojunk]

Shenzhen moves to stabilize property market
2016-10-05 08:08 | Xinhua | Editor: Mo Hong'e

Shenzhen on Tuesday rolled out a spate of measures, including higher down payments and purchase restrictions, in its latest attempt to stabilize the red-hot property market.

Shenzhen became the 10th major city around China to clamp down on property speculation in about one week, following cities like Beijing, Tianjin, Hefei and Suzhou that have all seen home prices skyrocketing during the past more than one year.

Liu Hongyu, head of the real estate research institute of Tsinghua University, said the loan and purchase restrictions could help restrain speculative demand while increase in land supply could bridge the supply-demand imbalance.

First-time homebuyers who have no mortgage records in Shenzhen will continue to pay a minimum down payment of 30 percent. But the down payment for those who have mortgage records but no homes is raised to no less than 50 percent and that for second home purchases will be no less than 70 percent, the municipal government said in a circular.h Meanwhile, purchase restrictions were upgraded to rein in speculation in the southern Chinese booming city where prices of some homes have more than doubled since 2015.

People without a local hukou (household registration certificate) are allowed to buy only one house if they have paid five or more years of personal income tax or social insurance. The earlier minimum requirement is three years.

For those who have hukou certificates, a family continues to be banned from buying a third home and a single adult is banned from buying a second home.

The municipal government also said it will increase land supply in the coming years. It aims to have 800 hectares of land for housing development in the five years to 2020.

In some land sales, developers need to have plans for construction of some low-cost houses for rent or sale to win the auctions.

Also it ordered property developers to build more smaller homes: 70 percent of the total floor area of a real estate project shall be apartments smaller than 90 square meters.

The authorities also ordered enhanced market monitoring and crackdown on market activities that violate rules and laws.

Also late on Tuesday night, the municipal government of Guangzhou, capital of south China's Guangdong Province, ordered strict implementation of existing purchase restrictions and lending policies.

In a circular, the municipal government pledged to increase land supply and curb rapid rises in land prices by granting land to developers who offer same price but pledge to build more low-cost houses for sale or rent in auctions.

It also promised to beef up market supervision and crack down on market irregularities. Developers must start to sell within 10 days after getting pre-sale permits.

 

[TaiShang]

China, Georgia wrap up FTA talks
October 06, 2016, Xinhua

Chinese Commerce Minster Gao Hucheng (2nd L, front) and Georgian Vice Prime Minister and Minister of Economy and Sustainable Development Dimitry Kumsishvili (2nd R, front) sign on the memorandum of understanding in Tbilisi, Georgia, Oct. 5, 2016. China and Georgia on Wednesday substantially concluded their Free Trade Agreement (FTA) negotiations, with a landmark memorandum of understanding signed in Tbilisi. (Xinhua/Giorgi Induashvili)

TBILISI, Oct. 5 (Xinhua) -- China and Georgia on Wednesday substantially concluded their Free Trade Agreement (FTA) negotiations, with a landmark memorandum of understanding signed in Tbilisi.

The memo was signed by visiting Chinese Commerce Minster Gao Hucheng, Georgian Vice Prime Minister and Minister of Economy and Sustainable Development Dimitry Kumsishvili.

The signing of the FTA deal will further consolidate and boost bilateral trade relations between China and Georgia and benefit the peoples of the two countries, Gao said after signing of the memo.

After the implementation of the FTA agreement, Chinese enterprises and consumers will have greater access to high quality products like wine and fruits from Georgia, while Georgians will benefit from cheaper China-made industrial products, Gao said.

"The substantial ending of the FTA talks will provide a better opportunity for the Georgian products ... to enter the vast Chinese market with competitive prices, which will greatly promote the export of our country and benefit the economic development of Georgia," Kumsishvili told a press conference after the signing ceremony.

Kumsishvili hailed the FTA deal between Georgia and China as "historic", saying China has become the fourth largest trading partner of Georgia, which will attach great importance to developing ties with China in the future.

The FTA agreement between Georgia and China will enter into effect upon ratification by the two countries.

China and Georgia launched their bilateral FTA talks in December 2015.

 

[ahojunk]

More Chinese cities to move to tame housing price rise: report
(Xinhua) 09:37, October 07, 2016

(File Photo)​

China's central government will continue to focus on destocking excess houses, especially in lower-tier cities, while implementing city-specific policies to tackle sharp housing price rises in higher-tier cities or cities with low stocks, according to a report released by international rating firm Fitch.

By Thursday, a total of 19 Chinese cities have rolled out specific policies including higher mortgage down payments and home purchase restrictions to curb speculative housing purchases in the past week.

Several cities like eastern Chinese cities Hangzhou and Nanjing have introduced price caps in government land auctions to limit home price increases while some have also been putting up land for sale to increase supply in the short to medium term.

These city-specific policies could seek to tame land prices or control demand from investors. Fitch expected China's central and local governments to continue to introduce or modify policies to cool the overheated property market.

Prices in 100 major Chinese cities rose 14.9 percent in the first nine months of 2016, with August and September seeing record month-on-month growth of more than 2 percent, according to the China Index Academy, a private property research institute.

Fitch expected purchase restrictions to continue in these cities to control demand from speculative investors and give priority to owner-occupiers.

Other cities with strong property demand, low inventory levels, growing populations and rapid increase on housing prices may also introduce home purchase curbs to tame prices, according to Fitch.

 

[grey boy 2]

China Three Gorges to buy Duke Energy's Brazilian business for $1.2b
(chinadaily.com.cn) Updated: 2016-10-11 10:54

A truck drives past signage outside the Duke Energy Corp Gallagher Station power plant in New Albany, Indiana, US, July 27, 2015.[Photo/VCG]


Duke Energy Corp has agreed to sell its Brazilian business to China Three Gorges Corp for $1.2 billion, the MarketWatch reported on Monday.


Proceeds from the sales will be used to repay debt, the company said. Duke Energy's long-term debt, including items, was about $39.93 billion as of June 30.


"This is another important step forward in driving our strategy to focus on our core domestic regulated business, and it builds on our recent acquisition of Piedmont Natural Gas," Lynn Good, chief executive of Duke Energy said in a statement.


The deal is expected to close in two to four months, the financial news website said.


Duke Energy, the second-largest US utility owner by market value, said in February it was looking to sell its international assets to drive more stable earnings and cash flow growth from the United States.


Earlier media reported that Duke Energy has invited Canada-based Brookfield Asset Management, French public utility company Engie SA and China Three Gorges Corp to submit binding bids for its Latin American power assets.


Shares of Duke Energy have risen 7 percent so far this year, while the S&P 500 index up 5 percent during the same period.


Agencies contributed to this story.
http://www.chinadaily.com.cn/business/2016-10/11/content_27022344.htm

 

[艹艹艹]

Apple establishes 2nd R&D center in China
ECNS App Download

Tim Cook visits an Apple Store in Shenzhen, South China's Guangdong province, on Oct 12, 2016.(Photo by Chai Hua/chinadaily.com.cn)

Apple Inc will set up its second China research and development center in Shenzhen next year, shortly after it established a R&D center in Beijing, which highlights the importance of the China market to the U.S. tech giant.

Apple CEO Tim Cook announced the plan on Tuesday during his visit to Shenzhen, the southern Chinese manufacturing hub and innovation center.

Apple said in an email statement to China Daily: "The Shenzhen center, along with the Beijing center, is also aimed at strengthening relationships with local partners and universities as we work to support talent development across the country. We are excited to be opening a new Research and Development center here next year so our engineering team can work even more closely and collaboratively with our manufacturing partner."

"Shenzhen is an incredibly vibrant city where we are proud to support over 200,000 jobs between advanced manufacturing and the growing App economy."

The company did not disclose the investment size of the new venture. Tim Cook is scheduled to attend an entrepreneurship forum in Shenzhen on Wednesday where he will talk with Premier Li Keqiang.

Earlier this month the local government said on an official Wechat account that Apple has set up its first China research and development center in Wangjing area of Beijing, with registered capital of 100 million yuan ($14.99 million).

The R&D unit will have about 500 employees and its total investment will eventually reach 300 million yuan.

Apple is currently wrestling with tumbling smartphone sales and mounting competition from local rivals in China, the world's largest smartphone arena.

http://www.ecns.cn/business/2016/10-12/229878.shtml

 

[AndrewJin]

OMG
They are losing their market in China, but they sill invest more...
I don't get it....

Apple is currently wrestling with tumbling smartphone sales and mounting competition from local rivals in China, the world's largest smartphone

 

[艹艹艹]

OMG
They are losing their market in China, but they sill invest more...
I don't get it....

They don't want to lose the talent market in China.

 

[JSCh]

Friday, October 14, 2016, 12:12
China's producer price up first time in 5 years
By Agencies

​

Source: National Bureau of Statistics​

BEIJING - China's producer prices unexpectedly rose in September for the first time in nearly five years, while consumer inflation quickened to 1.9 percent from a year earlier, also beating market expectations.

China's producer price index (PPI), which measures costs for goods at the factory gate, ended a 54-month straight decline in September, official data showed Friday.

The reading increased 0.1 percent year on year, the first positive reading since March 2012, according to the National Bureau of Statistics (NBS).

On a month-to-month basis, it increased 0.5 percent amid warming prices in more industries surveyed, with the number increasing by eight to reach 25, NBS senior statistician Yu Qiumei said.

Moreover, the turn is closely linked to higher price in some key industries including ferrous metals metallurgy and coal mining, Yu said in a statement.

Prices in the coal mining industry increased 4.1 percent year on year, going upward for the first time since July 2012, while the ferrous metals metallurgy and rolling industry saw price increase by 10.1 percent than previous year.

The positive reading is also attributable to the country's capacity cut and destocking, which trimmed oversupply, and recovering commodity price of crude oil, iron ore and nonferrous metals in the global market, Yu said.

Factors including rising prices of coal and steel suggest the PPI will continue to rise in October with a possible 0.7 percent year on year increase, said Jiang Chao, strategy analyst at Haitong Securities.

China's industrial growth, corporate profits and investment, especially private investment, were stabilizing and recovering, Chinese Premier Li Keqiang said Tuesday.

The economy in the third quarter not only continued the growth momentum in the first half of this year, but also featured some positive changes, the premier said, adding that China is fully capable of maintaining medium to high speed growth.

Consumer Price Index

CPI, the main gauge of inflation, grew 1.9 percent year on year in September, up from August's 1.3 percent.

The September data dropped for the fifth-consecutive month from 2.3 percent in April, when the CPI reached its highest level since July 2014.

On a month-on-month basis, the CPI rose 0.7 percent in September.

NBS statistician Yu Qiumei attributed the moderated growth of inflation in September largely to rising food prices.

The price of vegetables and fruit rose 7.5 percent and 6.7 percent, respectively, year on year in September, compared with 3.9-percent and 0.6-percent drop registered in August.

In addition, the price of services also increased in September, with education services price rising 3.2 percent year on year, compared with 2.2-percent rise in August.

Since January 2016, CPI has been calculated using a new comparison base and included more products and services, while slightly reducing the weighting of food.

 

[Echo_419]

Nagpur: Chinese state-run company China Railway Rolling Stock Corporation (CRRC) will set up a railway coach and equipment manufacturing unit at Butibori MIDC Extension, to fulfil the tender bagged by it to supply coaches to Nagpur Metro Rail Corporation Limited (NMRCL). A memorandum of understanding will be signed between the company and state industries department on Saturday in the presence of chief minister Devendra Fadnavis and union transport minister Nitin Gadkari on October 15.

Leng You, division head of international business of CRRC, said the plant will generate direct employment for more than 5,000 people over the next five years. “Proposed investment within next five years is expected to be Rs1,500 crore in the plant spread over 250 acre,” he told media persons on Thursday.

You said CRRC was a state-owned corporation with over 1.75 lakh employees. “We became the world’s largest rolling stock manufacturer with merger of CSR Corporation Limited and China CNR Corporation in June 2015. CRRC Zhuzhou Locomotive Company Limited (CRRC ZELC), one of our largest subsidiaries, will set up the plant,” he added.

“CRRC has already set up three rolling stock manufacturing units outside China in Turkey, Malaysia and South Africa. We have recently signed another agreement with the Georgian government for setting up a unit. We have already set up our railway equipment manufacturing plant in Haryana earlier this year. Nagpur has been chosen for its central location and railway connectivity,” he added.

India already has three railway coach manufacturing units in Gujarat (Bombardier), Andhra Pradesh (Alstom) and Bangalore (BEML), besides Indian Railway owned units. This will be the fourth unit.

NMRCL managing director Brijesh Dixit said the unit was being set up keeping the demand for next 100 years in mind. “Metro rail projects in at least 50 cities are in the pipeline. There are several cities having population of over 20 lakh and more will cross this figure in the coming days due to rapid pace of urbanization. Moreover, there is a huge potential for exports. Around 50% cars and bikes manufactured in India are exported. Bombardier exports coaches made in India to Australia,” he said, adding that this would be the first plant under Make in Maharashtra and Make in India initiatives.


On NMRCL’s rolling stock order, the MD said that it was for 69 cars. “The coaches will be delivered over 182 weeks. Six coaches are required urgently for the trial run. They propose to deliver them in 78 weeks, but we have requested them to do it earlier,” he said

NMRCL has issued the work order for Metro rail stretch from Hingna Road Depot to Sitabuldi to Afcons. Work on this stretch will begin this month. The work on Hingna Road Depot to Ambazari station will be done in the first phase, and from this station to Rani Jhansi Square station in the second phase.

The technical bid of one of the bidders, a joint venture (JV) between Tata Projects Limited (TPL) and Guangdong Yuantian Engineering Company (GYT), had been rejected by NMRCL. The JV had obtained a stay from Nagpur bench of Bombay High Court. The Supreme Court, however, ruled in NMRCL’s favour, paving the way for Afcons to start work.

http://timesofindia.indiatimes.com/...at-Butibori/articleshow/54839790.cms?from=mdr


@cirr @AndrewJin

 

[ahojunk]

Signs of cooling emerge as Chinese cities control property markets
2016-10-10 08:58 | Xinhua | Editor: Mo Hong'e

Signs of a cooling effect have emerged as Chinese cities have taken steps to control their red-hot property markets.

Shanghai has adopted measures that include increasing land supply and strengthening the supervision of capital to address its sky-high housing market.

According to the measures published Saturday, the city will increase the supply of land for commercial housing construction. A work team composed of staff from government departments will be formed to regulate the funding sources for land purchases.

The city will also enhance supervision over the purchase of homes that have previously been owned but never used. Stricter supervision over new home prices will also be implemented.

Authoritative property market information will be released on a regular basis to stabilize market expectations.

Also on Saturday, Nanchang, capital of east China's Jiangxi Province, adopted a spate of measures to restrict home buying.

In certain districts of the city, local residents who own one or more houses will not be allowed to buy new homes. People without a local hukou (household registration certificate) who own one or more houses will not be able to buy either new or pre-owned houses.

First-time home buyers will be required to make a minimum down payment of 30 percent, compared to 20 percent previously.

Statistics show over 90 percent of cities surveyed in August reported new home price rises, up from 73 percent in July. Central bank data showed that banks in August made 529 billion yuan in household loans, with mortgages accounting for 55.7 percent of the total.

Since Sept.30, a dozen cities, including both first-tier cities such as Beijing and Shenzhen as well as smaller cities, have rolled out policies ranging from higher down payments to home purchase restrictions to curb speculative housing purchases.

Zhou Xiaochuan, governor of the People's Bank of China, said the Chinese government is very concerned about the recent rise in home prices and will take active measures to regulate the market.

He made the remarks while co-chairing the Fourth G20 Finance Ministers and Central Bank Governors Meeting with Chinese Finance Minister Lou Jiwei in Washington Thursday.

COOLING DOWN

Sun Qiang, a real estate agent in northern Beijing, believes that the higher down payment minimums introduced on Sept.30 have discouraged many buyers.

"I was busy for all of September, and I even took 10 groups of clients to see houses one day," he said. "But during the first three days of the National Day holiday (Oct. 1-7), I only received two groups."

Hu Jinghui, vice president of leading real estate agency 5i5j, said records show that purchase contracts for 204 new houses in Beijing were signed from Oct. 1 to 6, down 73.7 percent from the same period in September and a year-on-year drop of 42.2 percent.

According to the Hangzhou branch of 5i5j, an estimated 20 to 30 percent of clients will cancel or delay home buying plans due to credit tightening.

In Tianjin, the actual transaction volume for pre-owned houses through 5i5j.com during the National Day holiday dropped by 50 percent from the same period of September.

WAIT-AND-SEE

"The slack market during the holiday could partially be the result of people traveling. We will spend some more time observing the market reaction to readjust our sales strategy," said Mr Zhang, a real estate agent in Beijing.

Zhang Jie, head of tmsf.com, a Hangzhou-based housing market research institute, agreed that the significance of the transaction volume during the holiday is limited.

However, he said a series of control measures by the city have somewhat curbed investment demand. "A growing number of buyers are in a wait-and-see mood," he said.

Yan Yuejin, an analyst at E-house China R&D Institute, is hopeful that with policy controls in place, home prices will gradually drop to a reasonable range.

Jia Shenghua, a real estate researcher at Zhejiang University, said the control measures are expected to achieve positive results, and more policies must be adopted to stabilize the market.