to China's one-year loans to financial institutions, at 15 basis points, were the largest since the outset of the COVID pandemic. Industrial output and retail sales growth both slowed from a month earlier to a year-on-year pace of 3.7% and 2.5% respectively,The yuan dropped to its lowest in 9-1/2 months, and sources told Reuters that China's major state-owned banks stepped into the spot market to steady the currency. After that, it hit 7.2743 per dollar, having been as low as 7.2875.
Property investment, sales and fundraising extended their slide in July, the data on Tuesday showed. New construction starts by floor area are down nearly 25% year-on-year and highlight how there is neither the appetite nor funds to build or buy. "We reckon that markets still underestimate the aftermath of the significant collapse in China’s property sector, which accounts for more than half of global new home sales," said analysts at Japanese bank Nomura.
"The chain reaction triggered by slumping new home sales may lead to a rising number of developers' defaults, a sharp contraction of government revenue, falling demand for construction materials, declining wages... weaker consumption, and faltering financial institutions."