China property index falls for 7 months

The latest official figures show China's Property Index falling last month. In fact June marks seven straight months of a continual dip in the Index, which is a composite figure measuring prices, transaction volumes, consumer confidence, and investment trends. Yang Fei examines prices and volumes in Guangzhou, and some updates on the situation in Shanghai.

In Guangzhou, prices dropped but sales volumes jumped in June. The average price of properties in the ten districts of the city fell to 9,500 yuan per square meter, tumbling 10 percent from May, in what is the biggest drop in a year. Many blame this on more price-controlled properties going on the market.

But lower prices stimulated the market, with the number of deals in June jumping 70 percent from a month earlier.

And experts say there is a possibility of further price falls in the second half of the year, with only slight fluctuations over the next few months.

While in Shanghai, for the first half of July,total deals reached for new housing fell 22 percent from the same period in June. But prices are still relatively high.

Bigger market share for Shanghai overseas banks

Overseas banks are taking a bigger share of the market in Shanghai, with assets edging ever closer to those of domestic lenders.

The Shanghai Bureau of the Banking Regulator says total assets at overseas banks in Shanghai rose to 780 billion yuan, or 114 billion US dollars, as of the end of June. That's an 11-percent jump from the beginning of the year. This means that overseas banks now account for 16 percent of market share in Shanghai, a rise from the 15 percent recorded at the start of year.

In contrast, assets at state-owned banks and joint stock banks show definite falls in the first half of the year.