J.P. Morgan AM: Chinese household assets are dominated by property

J.P. Morgan AM: Chinese household assets are dominated by property

October 16, 2023

Real Estate China
China.jpg

China’s Golden Week holiday provided some positive news for the world’s second largest economy, but the property sector remains a headwind.

Tourism spending during the eight-day holiday rose above pre-pandemic levels, with tourism numbers and revenue up 4% and 2% from 2019 respectively. However, activity in the property sector remains muted and has dampened consumer confidence overall. Over 60% of Chinese household wealth is tied up in property; this is higher than in other regions and may explain why weakness in the property sector is weighing on consumers.

Incremental policy easing has been evident since August, but given the importance of the real estate sector to the health of the overall economy, in our view further support may be required to get the recovery back on track.

16102023 JP Morgan AM

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