{"id":141728,"date":"2021-10-14T09:41:18","date_gmt":"2021-10-14T09:41:18","guid":{"rendered":"https:\/\/precoinnews.com\/?p=141728"},"modified":"2021-10-14T09:41:18","modified_gmt":"2021-10-14T09:41:18","slug":"analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/","title":{"rendered":"Analysis-China likely to keep property curbs despite slowdown, may soften tactics"},"content":{"rendered":"

BEIJING (Reuters) – Chinese leaders, fearful that a persistent property bubble could undermine the country\u2019s long-term ascent, are likely to maintain tough curbs on the sector even as the economy slows, but could soften some tactics as needed, policy sources and analysts said.<\/p>

FILE PHOTO: A man rides a bicycle next to a construction site near residential buildings in Beijing, China, January 13, 2021. Picture taken January 13, 2021. REUTERS\/Tingshu Wang\/File Photo<\/figcaption>

President Xi Jinping looks determined to press ahead with the latest round of property tightening even if it adds to near-term pain, in contrast to previous campaigns which tended to be watered down when economic growth began to falter, they said.<\/p>\n

Xi\u2019s resolve stems from a longer-term structural push to reduce the economy\u2019s reliance on property and debt and channel more resources into high-tech manufacturing and other emerging sectors to drive growth.<\/p>\n

Despite rapid expansion of other industries in recent years,<\/p>\n

the property sector, along with related sectors such as construction, still accounts for more than a quarter of China\u2019s gross domestic product (GDP).<\/p>\n

The world\u2019s second-largest economy has staged an impressive rebound from the pandemic but there are signs the recovery is losing steam. Widening power shortages are adding to the pressure from property restrictions, raw material shortages, supply chain disruptions and weak consumer spending.<\/p>\n

Global worries about a possible spillover of credit risk from China\u2019s property sector into the broader economy also have intensified as major developer China Evergrande Group wrestles with more than $300 billion of debt.<\/p>\n

Liu He, Xi\u2019s top economic aide, has repeatedly warned against financial risks, while Guo Shuqing, head of the banking regulator and party chief of the People\u2019s Bank of China (PBOC), has said property is the country\u2019s biggest \u201cgrey rhino\u201d.<\/p>\n

\u201cGrey rhino\u201d refers to an obvious, significant threat that is often ignored until it is too late.<\/p>\n

\u201cProperty curbs will be painful, but this is a price that needs to be paid,\u201d said a source who is involved in internal policy discussions.<\/p>\n

\u201cIn the past, we always loosened controls due to economic downturns, but this time round the leadership\u2019s determination looks very firm.\u201d<\/p>\n

The State Council Information Office and the PBOC did not immediately respond to Reuters\u2019 requests for comment.<\/p>\n

RED LINES IN THE SAND<\/h2>\n

Despite numerous campaigns over the years to curb hot property prices, housing in China has grown increasingly unaffordable, hampering Beijing\u2019s efforts to boost birth rates and address the rapid ageing and slowing growth of its population, analysts said.<\/p>\n

Officials ratcheted up the latest property curbs in August 2020, when the PBOC introduced new measures to closely monitor and control the debt levels of developers – setting \u201cthree red lines\u201d to curb their borrowing and contain debt risks.<\/p>\n

But the price of policy mistakes would be high, given the size of the industry, its importance as a revenue source for local governments, and risks to social stability in the event of a rapid plunge in home prices. Many Chinese have never seen an extended property slump.<\/p>\n

\u201cWe should prioritise stability in the property sector. We don\u2019t want to see property prices rising rapidly, nor do we want to see many property developers going bankrupt,\u201d Zong Liang, chief researcher at Bank of China, told Reuters.<\/p>\n

MARGINAL CHANGES STILL POSSIBLE?<\/h2>\n

While the PBOC is likely to maintain its pressure on developers to reduce debt and clean up their balance sheets, some marginal policy changes may be possible to correct excessive credit tightening by some lenders, insiders and analysts said.<\/p>\n

Last month, as Evergande\u2019s debt crisis intensified, the PBOC said it would safeguard the legitimate rights and interests of home buyers.<\/p>\n

\u201cThe \u2018three red lines\u2019 are unlikely to change, but the implementation of the rules could be loosened a bit,\u201d said Lian Ping, chief economist at Zhixin Investment.<\/p>\n

\u201cThe standard on property loans won\u2019t be loosened, but the scale of such lending could be increased somewhat,\u201d he said.<\/p>\n

Banks also could be given more leeway to lend to genuine home buyers as opposed to speculators, and healthier developers could get more support, analysts said.<\/p>\n

\u201cAmid the worsening slowdown, we expect Beijing to step up fiscal and monetary easing measures, though it will largely stick to its tightening stance on the property sector and those with high carbon emissions,\u201d Ting Lu, chief China economist at Nomura said in a note.<\/p>\n

However, some local governments may introduce some minor easing measures, focusing on lifting local restrictions and adding some subsidies, Lu said.<\/p>\n

The PBOC, meanwhile, has been funneling more credit into the manufacturing sector in recent months, at the expense of the property sector.<\/p>\n

Outstanding medium- and long-term loans for the manufacturing sector rose 41.6% year-on-year in June, quickening from a 24.7% rise a year earlier, while growth of outstanding loans for the property sector slowed to 9.5% in June from 13.1% a year earlier, central bank data showed.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

BEIJING (Reuters) – Chinese leaders, fearful that<\/p>\n","protected":false},"author":3,"featured_media":141727,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"\nAnalysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"BEIJING (Reuters) – Chinese leaders, fearful that\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-14T09:41:18+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/10\/Analysis-China-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/\",\"url\":\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/\",\"name\":\"Analysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-10-14T09:41:18+00:00\",\"dateModified\":\"2021-10-14T09:41:18+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/precoinnews.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Analysis-China likely to keep property curbs despite slowdown, may soften tactics\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Analysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/","og_locale":"en_US","og_type":"article","og_title":"Analysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News","og_description":"BEIJING (Reuters) – Chinese leaders, fearful that","og_url":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/","og_site_name":"Pre Coin News","article_published_time":"2021-10-14T09:41:18+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/10\/Analysis-China-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/","url":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/","name":"Analysis-China likely to keep property curbs despite slowdown, may soften tactics - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-10-14T09:41:18+00:00","dateModified":"2021-10-14T09:41:18+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/business\/analysis-china-likely-to-keep-property-curbs-despite-slowdown-may-soften-tactics\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/precoinnews.com\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Analysis-China likely to keep property curbs despite slowdown, may soften tactics"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/141728"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=141728"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/141728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/141727"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=141728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=141728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=141728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}