The Chinese economy, long since the pride of the Chinese government as well as the primary driver for their financial rise, has started to cool down after a long period of economic warmth. Factors like the trade dispute and lean months have been to blame.
June was an especially lean month. According to Reuters, real estate investments in June cooled down to 8.4 percent. In comparison, it was still 9.8 percent in May. To be clear, 8.4 percent isn't anything to be worried about. The real issue is that it has been the slowest China's growth has been ever since December 2017.
Developers have actually used sales to buffer the sharp drop, which was accelerated by credit deficits as well as shantytown redevelopment slowing down. The demand for homes, as a result, cooled down. That was one of the reasons June turned out as it was, in addition to the other conditions that the Chinese economy suffered from.
CBS reports that the government crackdown on local projects may have also impacted this. Industrial output affected the situation greatly; it also didn't help that pressure from the US-China trade war added unjustly to what was already a dire situation. This forced Beijing to take measures to create more measures to reduce financial risks and accumulating debt.
The hot news is the increased focus on infrastructure in China. Infrastructure creates more conditions for the economy to move again-it also creates more jobs, which helps the economy further. The infrastructure in question is railway projects, which China always had access to whenever things go wrong financially for them.
This had an expected bump toward yuan loaning which, in July, showed signs of life. It was one of the few positive signs that the economy is taking a better path.
There are also indicators that the real estate may have a solution in the works. With some real estate companies turning their properties into livable units, new investments may soon come to the rescue of the economy. This was echoed by NBS spokesman Mao Shengyong, who echoed his feelings that property investment will still continue to experience moderate, stable, and quick growth.
New sales and more converted properties in the real estate sector could just be what the economy needs to create a fresh new start from stalling.