China’s REITs at record lows, exports rise amidst deflation; Rate cut expected to support economy.

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China REITs plumb record lows as economic gloom lingers

SHANGHAI/SINGAPORE, Jan 11 (Reuters) – China’s real estate investment products are tumbling, extending last year’s slump as investors lose hope for a recovery in the economy and property assets such as industrial parks and logistics hubs.

Chinese real estate investment trusts (REITs), which issue shares to investors against a portfolio of real estate holdings, have hit successive lows in the first few days of 2024.

After tumbling 28% in 2023, the CSI REITs Index has dropped another 6.4% this year through a rare, seven-day losing streak driven by one REITs manager’s disclosure of cuts in warehouse rental prices and broader fears of falling yields.

China’s exports rise, but deflation persists as economy enters 2024 on shaky footing

BEIJING, Jan 12 (Reuters) – China’s exports grew at a faster pace in December, while deflationary pressures persisted last month, keeping alive expectations for more policy easing measures to shore up an economy carrying significant pockets of weakness into 2024.

Chinese policymakers could breathe a sigh of relief on signs global trade is slowly turning a corner with the prospect of lower borrowing costs on the horizon, but a protracted property crisis, cautious consumers and geopolitical challenges point to another bumpy year for the world’s second-biggest economy.

Exports grew 2.3% from a year earlier in December, customs data showed on Friday, compared with a 0.5% increase in November and beating the 1.7% boost expected in a Reuters poll. Imports grew by 0.2% year-on-year, missing forecasts for a 0.3% increase but still reversing a 0.6% drop a month prior.

China Seen Cutting Rate, Boosting Cash to Support Economy

(Bloomberg) — China’s central bank is likely to cut a key policy rate and pump more cash into the financial system on Monday as it tries to counter deflationary pressures and boost lending to support the economic recovery.

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