MNI China Press Digest Nov 15: Propty Ease, PBOC, Carbon Tool

The following lists highlights from Chinese press reports on Monday:

• Chinese regulators have "absolutely" loosened policies against the property sectors and some Chinese banks have relaxed mortgage lending quotas since October, ordering branches to boost sales to customers with high standing, the Economic Observer reported citing an executive at a lender in central China. The newspaper reported after property stocks jumped last week and as real estate bonds also recovered. However, lenders remain cautious about loans to developers, assessing based on the cities and locations of the projects, and they are particularly careful with those developers that have run into liquidity challenges, the newspaper said citing the bank official. Local governments have also called for meetings with local banks fearing worsening crisis without adequate bank credit, the newspaper said.
• China must prevent real estate bubbles and the financialization of the property industry, maintain prudent monetary policies, support consumption recovery, and prevent fast inflation, according to a report by Wind Information summing separate meetings of the People's Bank of China and other financial regulators held on Nov. 12.. Authorities must stabilize prices of land and homes, keep market expectations stable and balance pro-growth and risk-prevention goals, the regulators said according to Wind.
• The carbon credit tools introduced by the PBOC to boost green lending should not be seen as a rate cut in disguise, but as serving to guide the financial industry to recognize the significance of transition toward a green economy, the Economic Daily said in a commentary. Some observers estimated as much as CNY1 trillion to be released by these tools, equivalent to a full-scale RRR reduction, which would be a misinterpretation, the official newspaper said. The carbon-reduction tools have not set a funding quantity limit but will "accurately" target emerging industries with large potential for cutting emissions, it said. The credit will support operations with clear due dates and require disclosure, it said.