Xia Bin, an academic advisor to the People’s Bank of China, told a weekend forum in Shanghai that Beijing will maintain its current mixture of monetary and fiscal policies despite moderating economic growth and slowing property price growth, Reuters reported. Following the introduction of cooling measures targeting property starting in April, housing transactions have slumped over the summer, and annual property price rises in 70 surveyed major cities slowed to 10.3% in July from 11.4% in June. "Don’t expect any change in the policy even if property prices see some fluctuations. Otherwise, you’ll make empirical mistakes," Xia said. "The aim of property control measures is not housing prices in a certain period of time." Nevertheless, concern about the health of the property sector is increasing: Agricultural Bank of China (601288.SH, 1288.HK) announced today that it has has halted loans to property developers for a week.
Categories