China's leasing and investment fell sharply in Q2 2022, but the recovery is already underway. The decline was driven by a decline in civil aviation demand, with a decrease of 5.4% in the number of flights and a 4.6% decrease in passenger traffic. The retail sector also saw a decline in demand, with 3103 new projects completed in Q2 2022, mostly in Tier 2 cities. The logistics sector also saw a decline, with a decrease of 91% in new projects. The overall recovery is expected to be gradual, with the economy expected to grow by 4.2% in 2022.
