PBOC RRR Cut Won't Fan Property Prices: Daily

The PBOC's decision to cut banks' reserve ratios (RRRs) by 0.5 pp announced on July 9 won't likely channel funding into the property market as the authorities had introduced centralized loaning for real estate a half year ago, the Economic Daily said citing Lian Ping, the head of research at Zhixin Investment and the former chief economist at Bank of Communications. Regional authorities will also strictly implement government policy of banning property speculation, the newspaper said citing analyst Wen Bin of China Minsheng Bank. The RRR cut should be considered a normal operation to manage liquidity and help small businesses obtain financing, not a change in the central bank's prudent monetary policy stance, the newspaper said.