China keeps lending rate unchanged as data show housing market is still struggling

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China Nouvelles

Real Estate,Lending Rates,Central Bank

BANGKOK (AP) — China's central bank kept a key lending rate unchanged on Monday, choosing not to loosen credit as data for May showed signs of persisting...

BANGKOK — China's central bank kept a key lending rate unchanged on Monday, choosing not to loosen credit as data for May showed signs of persisting weakness in the world's No. 2 economy's manufacturing and real estate sectors.

“This data was certainly on the disappointing side and may ring some alarm bells, as May’s policy support package has not yet translated to a slower decline of housing prices, let alone a stabilization,” Lynn Song, chief economist for Greater China at ING Economics, said in a commentary. Chinese buyers also have returned to auto showrooms, with vehicle sales climbing 8.3% from a year earlier to nearly 11.5 million units in January-May, the China Association of Automobile Manufacturers reported last week. Auto sales rose 1.5% in May.

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