China’s November property prices point towards continued moderation in overall prices

China’s property prices in November indicated towards a continued moderation in overall prices but one that is led by the Tier 1 cities. This reflects government attempts to ease down on excessive price gains in the Tier 1 cities.

Also, markets are closely monitoring developments in the short term money market rates. The PBoC raised the 14-day reverse repo rate by 5 basis points today to 2.65 percent. This just tracked the 5 basis points hike last week for the other tenors, including the 7-day, 28-day, and the 1Y medium term rate, noted Commerzbank.

The Chinese central bank is expected to remain on the delivering theme. However, it is expected to undertake steps to guarantee ample liquidity to avert a liquidity crunch. For USD/CNY, there was not much reaction to the property data, stated Commerzbank.

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