On the left, the two lines represent the year-over-year growth of China's property prices and land sales. The grey line is the 3-month moving average year-over-year growth of residential property prices. De-leveraging initiatives in China's property market has led to a slowdown in property price growth over the past year. The blue line is the year-over-year year-to-date change in land sales. The decrease in land sales growth is an issue for local governments in China, as land sales revenue accounts for a bulk of local government income.

On the right, the bars illustrate the structure of bank loans in China. It is made up of three components: 1) mortgage loans (grey), 2) property development loans (blue), and 3) other loans (purple). Historically, property related loans (mortgage loans and property development loans) constitute a large and growing portion of bank loans in China. The three-red lines initiative launched in late-2020 has, and will likely continue to, dampen the growth of property related bank loans.