China c.bank said to promote healthy development of real estate market

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

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SHANGHAI, Dec 26 (Reuters) – China’s central bank has pledged to promote healthy development of the country’s property market, saying it will protect homebuyers’ legal rights and better meet their reasonable living needs.

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

Echoing China’s annual central economic work conference held in early December, the PBOC said it would prioritize economic stability amid increasingly severe external environment and the global pandemic. incessant.

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“The PBOC … has become more cautious about its growth outlook, signaled its intention to use broad and targeted policy tools to support the real economy more proactively and, on the sidelines, softened its tone on the real estate sector. “, Goldman Sachs analysts said in a note on Sunday.

“We expect the central bank to inject more long-term liquidity through RRR cuts and various lending facilities, fiscal spending on budget to be more growth-friendly compared to 2021, and local governments relax building policies at the local level.”

The PBOC said it would maintain its flexible and appropriate monetary policy, 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 will deepen foreign exchange market reforms and increase the flexibility of the yuan exchange rate while guiding businesses and financial institutions towards “risk neutrality”.

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Shanghai News Room report; Editing by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

Penny D. Jackson