📝 China's Home Prices Fell Despite Policy Stimulus: UBS Strategy

China's new home prices fell for the third straight month in September, down 0.2% m/m after falling 0.3% in August; despite policy stimulus in a traditionally peak home buying period; Reuters calculations based on National Bureau of Statistics data show. Prices fell 0.1% y/y; matching August's decline. Of the 70 cities in the data; 54 reported declines in prices last month, up from 52 in August. Supportive policies boosted housing demand in some major cities like Beijing and Shanghai, but demand remained lukewarm in smaller cities struggling with excess supply. Meanwhile, investors are closely watching Country Garden after the grace period for the beleaguered developer's $15 mn coupon payment expired Wednesday with no word on payment yet.

- UBS Strategy