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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- In the past cycle, several investors have been raising their concerns over the housing affordability in Australia.
- Even though the house-price-to-income ratio in Australia has constantly been reaching new highs in the past decade, questioning the sustainability of the real estate market, it has also been strongly supported by international investors, and especially China.
- This chart shows how strongly China excess liquidity, defined as the difference between real M1 money growth and industrial production, has led Australia house prices (by 6 months).
- With China excess liquidity dramatically contracting (due to the sharp fall in real M1 money growth), it will be interesting to see if the Australia property market will hold given that the RBA also prepares for policy normalization.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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