29 apartment buildings to hit the Beijing market in December; U.S. hits China with diplomatic assault

Last year, 45 buildings hit the market in December. Of the 29, 13 have been priced and 62%, or 8 of them, are below market. 下月29楼盘扎堆入市

A slowdown in sales is worrisome due to the economic impact of the housing sector. China Property Dip Sparks Bank Fears
In April the CBRC told banks to test their loan books against a 50 percent fall in prices, and also a 30 per cent fall in transaction volumes.
In October, however, property transactions fell 39 percent year-on-year in China’s 15 biggest cities , according to government data. Nationwide, transactions dropped 11.6 percent, accelerating from a 7 percent fall in September.
The CBRC has not released the results and declined to comment. But one analyst who reviewed the stress-test documents said they did not take into account the impact that fewer transactions and lower property prices would have on bank collateral.
Adding up the slide in electricity demand, the slide in property prices, the decline in transaction volume, the outflow of hot money and the tight monetary policy, this is either a fluke blip on the radar or the start of a major slowdown. There are too many pieces in play for this to be sector specific. On the social mood front, the U.S. delivered a well-timed diplomatic strike: Softly, Softly: Beijing Turns Other Cheek — For Now
The US is moving forces to Australia, Australia is selling uranium to India, Japan is stepping up military actions and coordinating more closely with the Philippines and Vietnam in the South China Sea, Myanmar is slipping out of China’s column and seeking to reintegrate itself into the region, Indonesia and the Philippines are deepening military ties with the the US: and all that in just one week. If that wasn’t enough, a critical mass of the region’s countries have agreed to work out a new trade group that does not include China, while the US, to applause, has proposed that China’s territorial disputes with its neighbors be settled at a forum like the East Asia Summit — rather than in the bilateral talks with its smaller, weaker neighbors that China prefers. Rarely has a great power been so provoked and affronted. Rarely have so many red lines been crossed. Rarely has so much face been lost, so fast. It was a surprise diplomatic attack, aimed at reversing a decade of chit chat about American decline and disinterest in Asia, aimed also at nipping the myth of “China’s inexorable rise” in the bud.
The timing turned out to be brilliant. China is in the midst of a leadership transition, when it is harder for important decisions to be taken quickly. The economy is looking shaky, with house prices falling across much of the country. The diplomatic blitzkrieg moved so fast and on so many fronts, with the strokes falling so hard and in such rapid succession, that China was unable to develop an organized and coherent response. And because Wen Jiabao’s appearance at the East Asia Summit, planned long before China had any inkling of the firestorm about to be unleashed, could not be canceled or changed, premier Wen Jiabao was trapped: he had to respond in public to all this while China was off balance and before the consultation, reflection and discussion that might have created an effective response.
Leaving aside whether the U.S. moves were brilliant or not, they did catch China off guard and were a direct push back. The Obama Administration has had three years to formulate foreign policy, why unload a multi-policy attack now? Maybe social mood is the answer...if so, diplomatic confrontations will only increase as economic activity declines.

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