China announced new stimulus measures to boost the property market

On September 30th, the People’s Bank of China (PBoC) and China Banking Regulatory Commission (CBRC) jointly issued stimulus measures to lift some existing tightening policies on the property market and encourage banks to extend more mortgage loans with lower interest rates. The loosening measures are aimed to boost housing demand, which reflects the authorities’ concern of the sluggish housing market and economic growth. We don’t think the stimulus measures are able to significantly revive the investment-driven demand for property; in addition, it will take time to pass through to other related industries.

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