FLAMIONO HOUSE: NEWER STOCKS FOR REAL ESTATE HOME DEALS AND RENTALS
Updated September 30, 2018 11:20:51HONG KONG (Reuters) – New listings in the luxury home and villa market are rising on the back of a rebound in the value of Chinese yuan, which helps buoy property prices.
Chinese equities rose by almost 10 percent on Tuesday, after a disappointing start to the year, but the Shanghai Composite Index (SCI) lost ground.
The Shanghai Composite closed down 1.1 percent on Monday, while the Shanghai-Hong Kong Composite (SHG) fell 1.5 percent.
The yuan, backed by the central bank’s easing of monetary stimulus, has helped the country’s real estate market recover from a downturn in 2017.
The benchmark yuan gained $1.65 to reach its highest level since May, in response to a rise in the yuan’s value against the dollar.
“The value of the yuan is growing in response mainly to the strengthening of the Chinese economy and the weakening of the US dollar,” said Wu Lixin, an economist at Commerzbank AG.
But the currency weakness has left investors cautious, and it has been difficult to sell their assets because of concerns about capital controls, Wu said.
China’s currency fell more than 7 percent against the greenback on Tuesday to $1,085.80.
That is the highest since April 19, 2017.
On Friday, China’s central bank raised the official exchange rate by a quarter point to 6.75 yuan to help drive up the value and help spur home sales.
The Chinese government has tried to encourage the private sector to diversify their purchases and exports to help boost economic growth.