Signs of stabilization in China's June new house prices

China's June new house prices released on Saturday showed signs of stabilization. This follows multiple rounds of monetary easing since November and loosening of mortgage lending requirements in March. 

Separately, the extent of intervention to support the equity markets in the past fortnight could be even higher than previously thought. The latest figures suggest the capital base for China Securities Finance Corporation (CSFC) or the amount lent to it by the major banks has climbed to as much as CNY3trn (USD483bn). 

Earlier reports noted that the state-owned banks have lent CNY1.3trn (USD209bn) to CSFC to enable it to lend to brokerages to purchase shares. At CNY3trn, this works out to around 7% of the total market capitalization and over 2.5x the average trading volume. 

The move underscores the authorities' determination to support the equity market. For USD-CNY, it continued to hold steady today round the 6.2090 level, says Commerzbank.