There was a surge in floor space of residential building commencement. These rose by 14%. There was a strong surge in existing home sales. These rose by 44.4%. The floor space of commercial residential building sold was up by 27.9%.
Conclusion
Chinese growth has stabilised at 6.7% in the June quarter. As growth stabilises, restructuring of the Chinese economy is allowing China to reduce non-productive and inefficient parts of its manufacturing and mining sector. This is to Australia's benefit. The first half of the year have seen significant increases in Chinese imports of iron ore, crude oil, coal and copper.
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We are continually told that we should be frightened of the China slowdown. If this is what slowdown is like, we wish they had done it earlier.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual’s relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so. Those acting upon such information without advice do so entirely at their own risk.
This report was prepared as private communication to clients of Morgans and is not intended for public circulation, publication or for use by any third party. The contents of this report may not be reproduced in whole or in part without the prior written consent of Morgans. While this report is based on information from sources which Morgans believes are reliable, its accuracy and completeness cannot be guaranteed. Any opinions expressed reflect Morgans judgement at this date and are subject to change. Morgans is under no obligation to provide revised assessments in the event of changed circumstances. This report does not constitute an offer or invitation to purchase any securities and should not be relied upon in connection with any contract or commitment whatsoever
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