Shocking slowdown: China home resales drop unexpectedly in August

Tighter credit conditions are weighing on first-time buyers.

Existing home sales in China fell unexpectedly for the first time in five months, registering a 1.8% drop in August after posting a 2.4% rise in July,

According to CMC Markets, fewer first time buyers entered the resale market on tighter credit conditions.

“Concerns surrounding a slow-down in China weighed on investor sentiment after a swathe of data came in weaker early on in the month, pointing towards a weak manufacturing print this morning. The downbeat tone in markets was exacerbated following comments from China’s Finance Minister over the weekend, that investors should not expect major changes in government policies even as the economy faces growth concerns,” noted the report.