China's economy remains strong despite some slowing in bank lending, which remains above trend levels from recent years. Property prices across 70 large cities have risen over 10% on average compared to their previous peak in 2007, showing that the property market continues to rise without slowing down significantly. While lending growth has decreased, property prices continue to increase substantially year-over-year throughout China.

1. China´s Economy Remains Breathless
Although slowing, bank lending is still above the trend
line of recent years
Property prices in 70 large cities now on average at
least 10% higher than at their peak in 2007
China Economic Flash:
Lending is Slowing, but Property Prices without Gravity
400 16 Property Prices % y-o-y
New Loans
300 to GDP / Index 12
200 8
Trend
100 Line 4
Source: UBS, CEIC Source: UBS, CEIC
0 0
2003 - 2010 2002 - 2010
March. 12, 2010
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