All Reports

Jan 17 2013

Outlook for Chinese Real Estate

Chinese stocks have rallied in recent in months largely driven by positive news from the housing market, which is crucial to the overall Chinese economy. Residential housing has shown signs of strength with home prices improving across provinces.

In mid-2012 ECRI’s Chinese Leading Home Price Index (CNLHPI), which predicted that Chinese home prices would firm, also anticipated a rise in the Shenzhen Stock Exchange Real Estate Index (SSEREI) that began in late 2012. In fact, historically the CNLHPI leads turning points in the SSEREI, and may therefore, provide advance insights about the likely trajectory of Chinese real estate stocks.