Chinese Property Market’s Liquidity Struggles Continue Despite Signs of Policy Easing

China’s real estate market is still cooling, although several policy curbs have been eased and the financing environment is looking brighter.

Although sales and investment shrank and inventory rose during the week from Dec. 10 to 16, new housing sales by floor space in 58 surveyed cities dropped 0.1% compared with the same period last year, which is a slower contraction rate than the 25.7% and 25.2% declines in the previous two weeks, respectively, analysts with brokerage Huaxi Securities Co. Ltd. wrote in a Sunday note.