Government on standby to act against overheating.
BBVA notes that the National Bureau of Statistics (NBS) has released official data over the weekend which showed China's housing prices increased by 0.11% m/m in October, after a 0.05% increase in September, marking the fifth consecutive month prices have risen.
"For China, rising housing prices may present a constraint on further monetary easing (currently, the benchmark policy rate is 6.0%). Worth noting, during last week’s 18th National Party Congress, Housing Minister Jiang Weixin said that the government will maintain close watch over the property sector in the near future, as policymakers want to avoid overheating," said BBVA.
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