China’s Property Woes Pour Cold Water Over Steps to Boost Stocks
- CSI 300 Index slides 4.2% this week, the most in almost a year
- Benchmark of onshore stocks erases all of its reopening rally
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An intervention in the stock market. Liquidity injections by the central bank. More curbs on short selling. And yet, Chinese stocks can’t escape the real estate sector’s spiral of gloom.
Data this week showed that property investment — a key driver of China’s economic activity — continued to slump, while home prices fell at the fastest pace in almost a year in September. That negated investor optimism over data showing a pickup in third-quarter economic growth.