Vowing to promote the healthy development of the country’s real estate market, China’s central bank has said that it will safeguard the legal rights of home buyers and better satisfy their reasonable living needs.
The latest signs show that Chinese regulators are gradually easing restrictions on the property sector to prevent a hard-landing. All that indication is seen in the statement issued by the People’s Bank of China (PBoC). The PBoC published that statement following its fourth-quarter monetary policy committee meeting on December 25.
Amid an increasingly severe external environment and the unrelenting global pandemic the PBOC, echoing China’s annual Central Economic Work Conference held in early December, said it will prioritize economic stability.
In a note on Sunday, analysts at Goldman Sachs said:
“The PBOC…turned more cautious on its growth outlook, indicated an intention to use broad and targeted policy tools to support the real economy in a more pro-active manner, and on the margin eased its tone on the property sector.”
“We expect the central bank to inject more long-term liquidity via RRR cuts and various lending facilities, on-budget fiscal expenditures to be more supportive to growth compared with 2021, and local governments to ease property policies at local levels.”
The PBOC will safeguard its monetary policy flexible and appropriate, and liquidity reasonably to maintain the stability of the country’s economy. It will strengthen support to the real economy to include a bias toward small companies.
While guiding companies and financial institutions to be “risk-neutral”, the central bank will deepen reforms of the forex market and increase the flexibility of the yuan’s exchange rate, it reiterated.