China Continues To Slow

There are more concerns regarding the slow down in China, especailly in the property sector. Please see China’s Stocks Slump to Lowest in Six Weeks on Growth Concerns for more info. From the article:

China’s stocks fell, sending the benchmark index to its lowest level in six weeks, on concern a property slowdown will hurt growth and after Standard & Poor’s put 15 European nations on watch for lower ratings.

“The weakness in the property market will pose a big threat to economic growth next year,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “There is a lot of uncertainty in Europe. If the debt crisis worsens, hot money will probably continue to flow out of China.”

Last week China reduced it's reserve ratio in an attempt to stimulate the economy. See China Reserve-Ratio Cut May Signal Slowdown. From the article:

Reserve ratios will decline by 50 basis points effective Dec. 5, the central bank said on its website yesterday. The move may add 350 billion yuan ($55 billion) to the financial system, according to UBS AG.

A report due today may show that China’s manufacturing contracted for the first time since February 2009, and the nation’s stocks had their biggest decline in almost four months yesterday. Premier Wen Jiabao aims to sustain the economic expansion as Europe’s debt crisis saps exports, a credit squeeze hits small businesses and a crackdown on real-estate speculation sends home sales sliding.

See my other posts about China's slow down; Credit Suisse Says Chinese Banks Bankrupt, Jim Chanos Sees 'Deterioration' in Chinese Banks, China Loan Shark Market Crashes; Scores of Chinese Business Owners Unable to Pay Black Market Loans Commit Suicide or Disappear, Jim Chanos Talks About China And Debt, China is Slowing.