Economics
China’s Credit Expansion Rebounds in August on Property Binge
- Aggregate finance rose by more than all 25 economists forecast
- Mortgage lending led the surge as biggest cities lead boom
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China’s broadest measure of new credit exceeded estimates in August as a property boom in the nation’s biggest cities fuels near-term growth and adds to longer-term worries about the expansion’s sustainability.
The economy has shown signs of resilience as factory output, investment and retail sales all exceeded analyst estimates in August amid a boost from the property market. With policy makers signaling they’ll take steps to rein in "bubbly" housing markets and businesses remaining reluctant to invest, prospects for a sustainable credit-fueled reacceleration in economic growth appear some way off.