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Three Child Policy & RMBS Limits

CHINA

As well as the PBOC RRR adjustment a few other stories out of China doing the rounds. Following census data China has relaxed its one-child policy even further, saying up to three children will now be allowed. Many experts have questioned how effective this policy will be in address skewed demographics considering the lack of impact from the increase to a two-child policy.

  • Elsewhere China has limited issuance of RMBS in a bid to contain property prices and household debt. The PBOC is also said to be considering including RMBS in assessments of property-related loan exposure.

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