“A slump in China’s property market is negative for metals
demand,” Yang Jun, an analyst at Hongyuan Futures Co., said
from Beijing today. “Those who buy houses far from the city
center tend to buy cars as well, so it’s not just copper demand
from the construction industry that will go down.”
China’s property prices climbed at the slowest pace in six
months in July, the statistics bureau’s newspaper, China
Information News, reported today. Regulators have ordered banks
to conduct more stress tests to gauge the effect of a property
value drop of as much as 60 percent, raising concerns that
prices have further to fall.