Nothing to see here

16 February 2017 By Pete Sweeney Follow @petesweeneypro

A popular independent index of China’s red-hot house prices has gone quiet. China has been steadily deactivating private surveys that contradict official data, while ordering economists to stay chirpy. Increasing opacity could turn a healthy correction into a panic.

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Beijing-based Fang Holdings has stopped publishing a private compilation of home prices in 100 Chinese cities since November. Fang's chairman told the Wall Street Journal he had done so on his own initiative. "As an influential research arm, I think it's good for us to see... a more stable development of the market," the Wall Street Journal quoted him as saying.

Other private providers have changed or cancelled publication of economic indicators. In September London-based financial information provider Markit stopped releasing a preliminary purchasing managers survey that often conflicted with subsequent official data.

Chinese economists and analysts have reportedly come under official pressure to focus on signs of economic recovery and be less negative in public statements and reports.

Property prices in many cities have risen sharply in 2016. The government has taken some measures to restrain price growth but economists are worried that too strong a crackdown could destabilise the wider economy. Housing is a major driver of demand in industries from fixtures to steel and cement.

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