May 22, 2024 02:19 GMT
MNI China Press Digest May 22: Mortgages, Land Sales, Finance
MNI (BEIJING)
BEIJING (MNI)
MNI picks key stories from today's China press
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Highlights from Chinese press reports on Wednesday:
- Several cities including Wuhan and Hefei have lowered housing mortgage rates to 3.25-3.45% for first-time buyers following the People’s Bank of China’s move to scrap the lower limit of the rates last week, China Securities Journal reported. Banks are also prepared to cut the down-payment ratio to align with the policy floor set by the PBOC – no less than 15% and 20% for first- and second-time purchase, depending on sales performance, the newspaper reported citing an unnamed industry insider. With down-payments and interest rates dropping to low levels, further stimulus may focus on tax concessions for home purchases, the Journal said citing Zhao Wei, chief economist of Sinolink Securities.
- Government real estate support may stabilize declines in local government land sale revenue in H2, after falling 21% in April y/y, according to Luo Zhiheng, chief economist at Yuekai Securities. Zhao Wei, chief economist at Guojin Securities, said fiscal intensity in H2 depended on land sale revenue performance, but analysts needed time to assess the impact of recent policy support. Looking ahead, government expenditure will benefit from increased issuance of special bonds and ultra-long-term bonds in May and June, Zhao added.
- Authorities must coordinate to prevent and control interwoven risks involving real estate, local-government debt, and small and medium-sized financial institutions, Vice Premier He Lifeng has told senior government leaders at a financial conference in Beijing. Premier Li Qiang said officials must ensure financial services serve the real economy, make reforms to the local financial management system, and prevent systemic financial risks. (Source: 21st Century Business Herald)
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