Chinese central bank says to promote healthy development of real estate market By Reuters

© Reuters. FILE PHOTO: People wearing face masks walk past the headquarters of China’s central bank People’s Bank of China (PBOC), April 4, 2020. REUTERS / Tingshu Wang

SHANGHAI (Reuters) – China’s central bank is committed to promoting the healthy development of the country’s real estate market, saying it will protect the legal rights of home buyers and better meet their reasonable living needs.

The statement by the People’s Bank of China (PBOC), made after its fourth quarter monetary policy committee meeting on Saturday, is the latest sign that Chinese regulators are loosening restrictions on the real estate sector slightly to avoid a landing brutal.

Echoing the annual Central China Economic Labor Conference held in early December, the PBOC said it will prioritize economic stability, amid an increasingly severe external environment and the global pandemic. implacable.

“The PBOC (…) has become more cautious about its growth prospects, has indicated its intention to use broad and targeted policy tools to support the real economy more proactively and, on the sidelines, has relaxed its tone on the real estate industry, ”Goldman Sachs (NYSE 🙂 analysts said in a note Sunday.

“We expect the central bank to inject more long-term liquidity through RRR cuts and various lending facilities, that fiscal budget spending will be more growth-friendly compared to 2021, and local governments will ease restrictions. real estate policies at the local level. “

The PBOC said it would keep its monetary policy flexible and appropriate, and its reasonably abundant liquidity. It will strengthen support for the real economy, with a bias in favor of small businesses.

The central bank reiterated that it would deepen currency market reforms and increase the flexibility of the yuan exchange rate while urging companies and financial institutions to be “risk neutral.”

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