MNI China Press Digest Mar 24: RRR Cut, Real Estate Easing

The following lists highlights from Chinese press reports on Thursday:

• The People’s Bank of China may cut reserve requirement ratios (RRR) soon to help boost banks’ long-term funding, the China Securities Journal said citing chief economist Ming Ming at Citic Securities. About 63% of investors expect RRR cuts in the next three months, while only 47% also expect rate cuts, the newspaper said citing a survey by Huatai Securities. Commercial banks are under liabilities pressure as seen in the recent rise in the interbank deposit rate, the newspaper said. The central bank has made net injections of liquidity for the last five straight days, signaling its intention to keep liquidity ample, said the journal.
• China's northeastern city Harbin, the capital of Heilongjiang province, said on Wednesday it plans to end restrictions on new home purchases imposed since 2018, the Securities Daily reported citing the city. As Harin became the first so-called tier-2 city in the country to scrap real estate bans, more cities with sluggish property sales may follow its lead with further measures to revive the market, the newspaper said citing Zhang Dawei, chief analyst of Centaline Property. Still, the impact of ending home purchase curbs may be limited as buyers' desire for buying new homes remains low, the newspaper said citing Meng Xinzheng, analyst of China Index Academy. The price of new homes in Harbin has fallen for seven consecutive months since August 2021, the newspaper said.