FXStreet (Delhi) – Prakash Sakpal Economist at ING, notes that China’s rising spending on housing is becoming a driver of GDP growth and we reiterate our 7% GDP growth forecast for 4Q15, revised up from 6.7%. Key Quotes “The National Bureau of Statistics released 70-cities new home price indexes for September. 39 cities reported sequential increase in prices (first figure), up from 35 in August. Three Tier I cities (Guangzhou, Shanghai and Shenzhen) posted increase in excess of 1%, unchanged from August. Shenzhen remained the hot spot with a 4% rise (5.1% in August). Prices in 21 cities fell between 0-1%, down from 25 in August.” “Today’s data reinforces the positive message from the 16.7% YoY surge in housing starts and 91% surge in new mortgage loans in September (second figure) that rising spending on housing is becoming a driver of GDP growth. Following the release of 3Q GDP earlier this week we revised our 4Q GDP growth forecast to 7.0% from 6.7% and full-year growth forecast to 6.9% from 6.8% (consensus 6.8% for both 4Q and 2015).” “The Communist Party’s Fifth Plenum will be held next week, October 26-29 where the leaders will approve the 13th Five-Year (2016-2020) Plan. The big question is the GDP growth target. It was 7% in the current plan. Growth averaged at 7.4% from 2011 to 3Q15. We see it settling around 6.5% over the course of the next Five-Year Plan.” For more information, read our latest forex news.