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πŸ‡¨πŸ‡³ China holds rates steady as property slump enters its fifth year, betting on exports to buy time

πŸ‡¨πŸ‡³ China holds rates steady as property slump enters its fifth year, betting on exports to buy time

China's central bank held its one-year and five-year loan prime rates steady for a second straight meeting, even though July retail sales rose just 0.6% and property investment fell 19.2%. It's leaning instead on a 23.9% export surge that owes much to tariff front-loading.

Line chart of China Private FAI YoY YTD (dashed) and Public FAI YoY YTD (solid) from Mar 2020 to Jul 2026.
Property's 19.2% collapse dragged China's fixed-asset investment to a 6.7% contraction through July, with private FAI falling at the fastest pace since the May 2020 lockdown trough, per Christophe Barraud. Source

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