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China’s Q2 2023 GDP growth moderated to 6.3% y/y, suggesting the previous strong recovery momentum came to a halt in Q2 amid the fading effect of reopening.

China’s economic outlook of this year has been largely changed from its previous policy-led softlanding story by the recent flare-ups of Omicron and particularly Shanghai’s lockdown. However, this adverse spillover effect has not yet been fully reflected in Q1 GDP.

The price adjustment we anticipated in our previous report materialised in 2017. Today we do not see significant misalignment in house prices. In the residential sector, an upturn in demand would make it possible to reduce the price gap with re…