China’s Property Woes Pour Cold Water Over Steps to Boost Stocks

-- 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.Here’s What 8% Mortgage Rates Will Do to the Housing MarketData 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.

Weakness in global stocks spurred by geopolitical tensions in the Middle East worsened the pain for China’s market, with foreigners offloading 24 billion yuan of onshore stocks on a net basis this week. That’s the most since the week ended Aug. 18. Still, Morgan Stanley advised against buying the dip, cautioning that sentiment is likely to stay fragile and foreign fund outflows could persist.

“We do see two key risks hanging over China’s economy — the first one is property and the second is local government debt,” said Minyue Liu, an investment specialist for Asian and Greater China equities at BNP Paribas Asset Management in Hong Kong. “These issues have not yet been resolved. We heard that the government is working on a comprehensive plan. We do hope this will be announced soon.”

“Recent measures taken by the government cannot solve the economic issue that China is facing, particular in the property sector,” said Tina Teng, an analyst at CMC Markets in New Zealand. “Despite the recent positive data, investors remain cautious. The data has to be consistent and keep improving to convince them.

“You can’t make it up,” said MSNBC’s Joe Scarborough after the former president took just four minutes to contradict one of his claims.Republicans in uproar at suggestion to empower temporary speaker until January to allow Jordan more time to convince recalcitrant members Kyiv said it destroyed tanks and armored vehicles amid what the White House has called Russia's "renewed offensive" in eastern Ukraine.

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