Concern has returned to real estate, with recent data showing the government again resorting to property markets to support growth. Tier-2 are following tier-1 cities in restricting housing purchases, as usual based on hukou. The state has abandoned talk of deleveraging, aiming instead to stabilise the skyrocketing debt to GDP ratio. PBoC is using more open market operations to increase liquidity. Longer-term instruments like 28-day reverse repos were introduced for the first time since February to control a bond market rally.
September: safe as houses
September: safe as houses
September: safe as houses
Concern has returned to real estate, with recent data showing the government again resorting to property markets to support growth. Tier-2 are following tier-1 cities in restricting housing purchases, as usual based on hukou. The state has abandoned talk of deleveraging, aiming instead to stabilise the skyrocketing debt to GDP ratio. PBoC is using more open market operations to increase liquidity. Longer-term instruments like 28-day reverse repos were introduced for the first time since February to control a bond market rally.