https://www.citynewsservice.cn/china-biz-buzz/2026-02-02
China Factory Activity Contracts
China’s factory activity fell in January after ending a record-long contraction in December, according to National Bureau of Statistics figures released on Saturday. The official manufacturing purchasing managers’ index fell to 49.3 in January from 50.1 in December. The 50-mark divides expansion from contraction. The index for non-manufacturing activity fell 0.8 percentage point to 49.4. The figures coincide with the first month of China’s 15th Five-Year Plan (2026-30), under which the government has pledged to boost economic stimulus, including more incentives to address weak consumer demand. At the same time, Beijing has committed to continue industrial upgrading and to end oversupply in some sectors. China reported 5 percent growth for 2025.
New Home Prices Rise, Resale Prices Narrow Decline
Average prices of new homes across 100 Chinese cities rose in January and declines in the resale market declined, Reuters reported, citing China Index Academy, a mainland property research firm. The improvement in the slumping residential real estate market comes after government initiatives to try to stabilize the sector. New home prices rose 0.18 percent from December, slowing from a gain of 0.28 percent gain in December in larger cities that include Shanghai, Hangzhou and Chengdu. Prices in lowest-tier cities, however, continued to decline. In the existing home market, sales fell 0.85 percent in January, narrowing from a decline of 0.97 percent a month earlier. Home sales are likely to slow this month because of the nine-day Lunar New Year holiday that begins mid-month, then pick up in March, the research firm said.
Bitcoin Continues Downward Trajectory
Bitcoin, the world’s largest cryptocurrency by market value, was trading just above a nine-month low of US$77,000 this morning, continuing a steady decline that accelerated over the weekend, Reuters reported. Bearish sentiment was most recently stoked by fears that Kevin Warsh, President Donald Trump’s nominee to replace Federal Reserve Chairman Jerome Powell when his term expires in May, may tighten liquidity in the financial system. Cryptocurrencies are beneficiaries of a large Fed balance sheet that greases money markets. Bitcoin has lost about a third of its value since a record high last October. CoinDesk.com said the cryptocurrency probably has more room to drop.