China’s financial system is stable and real estate market expectations have improved, says PBC chief

PBC Photo: Xinhua

China’s financial system is stable, financial risks are under control and expectations for the real estate market have improved with structural adjustment, said Yi Gang, head of China’s central bank, while reassuring investors and refuting foreign media exaggerations regarding Evergrande in recent days.

Currently, China’s financial system is generally functioning well, and financial risks are convergent and controllable, Yi, governor of the People’s Bank of China, said in an interview with Xinhua News Agency on Tuesday.

Yi mentioned that some individual real estate companies were at risk due to their own mismanagement, indiscriminate expansion of diversification and other factors, while the authorities actively took measures to resolve the risks in such a way. stable and orderly and meet the financing needs of residents and real estate. real estate companies.

“The structural adjustment of the real estate market is conducive to the formation of a new development model for the country’s real estate and the healthy development of the whole sector,” Yi said, adding that the market’s expectations are rising. gradually improved.

The remarks showed that the relevant departments are currently paying great attention to housing risks, but at the same time, they also hope that market players will have a scientific and rational understanding of the market, Yan Yuejin, research director at E- house based in Shanghai China R&D Institute, the Global Times reported on Tuesday.

The real estate problem has indeed been perceived by everyone, but the industry will develop in a positive direction, so there is no need to look at the Chinese real estate market with pessimism, especially in the context of effective measures taken by officials, Yan said.

During the Central Economic Labor Conference held in mid-December, a key meeting that outlines key policy priorities for 2022, Chinese policymakers called for efforts to explore new development models for the industry, including the development of a long-term rental housing market, promoting the construction of affordable housing, supporting the commercial housing market to better meet the reasonable housing needs of buyers, while promoting a virtuous circle and stable for industry.

Yan also expected the relaxed home buying policy to meet real demand from residents.

In the interview with Xinhua, Yi also stressed the importance of the stability of the Chinese financial system for the next year, calling for a stable and proactive fiscal policy to keep its monetary policy flexible and appropriate and its abundant liquidity.

To further ease the burden and expand fundraising channels for businesses, Yi said businesses in general can get business loans with an average interest rate of 5%, a record high.

In addition, the central bank will issue a first batch of low-cost loans to financial institutions by the end of the month to enable reductions in carbon emissions, with the aim of supporting the country’s broader goal of bringing about emissions to peak before 2030 and achieve carbon neutrality. by 2060.

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