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China housing construction picks up in August

10 September 2012

China’s fixed asset investment (FAI) slipped slightly in August but investment in the residential housing sector picked up sharply, in line with the steady increase in the China Confidential Construction Overtime MoM Index, (Labour Macro Indicator, Sep 4) which has risen from below the 50-point threshold in May to 61.6 points in August – signifying a sharp upsurge in overtime hours worked on building sites across the country. We think the robust pace of residential housing investment is set to continue in September as home sales stay strong.

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