MNI China Press Digest Apr 19: PBOC, LPR, Real Estate

The following lists highlights from Chinese press reports on Tuesday:

• The People’s Bank of China will step up financial support for industries and companies affected by the Covid-19 outbreaks, guide banks to expand lending and share more profits with the real economy, according to a statement on its website. The central bank will provide incentive funding that is as much as 1% of the incremental balance of inclusive SME loans, and timely increase the quota of relending to agriculture and small businesses, the statement said. Banks should purchase local government bonds to support infrastructure investment, it said.
• China is likely to keep April's benchmark Loan Prime Rate unchanged on Wednesday as a 25 bp RRR cut announced last Friday won't be enough to drive down banks' own lending rates, the 21st Century Business Herald said. Banks would need at least two RRR cuts and other measures to improve their liabilities before deciding to lower their LPR quotations.
• China's housing market may rebound in the second half of the year, as bigger cities further relax their housing policies and as the impact of the epidemic weakens, the China Securities Journal reported citing analysts. The central bank on Monday also urged local lenders to reasonably determine the minimum down payment ratio and loan interest rate, as well as support the financing needs of developers and construction companies to promote a more stable real estate market, the newspaper said. Home sales in China by area fell 13.8% y/y in the first quarter.