China’s central bank says to promote healthy development of the real estate market

SHANGHAI: China’s central bank said on Saturday it would protect the legal rights of home buyers and better meet their reasonable living needs, promising to promote the healthy development of the country’s real estate market.

The opinion of the People’s Bank of China (PBOC), issued after its monetary policy committee meeting in the fourth quarter, is the latest sign that Chinese regulators are marginally easing the boundaries of the real estate sector to prevent a hard landing.

Following China’s annual Central Economic Work Conference, held in early December, the PBOC said it would prioritize economic stability amid an increasingly severe external environment and the relentless global pandemic.

PBOC said it will keep its monetary policy flexible and appropriate and liquidity is reasonably plentiful. It will strengthen support for the real economy with a bias towards small businesses.

The central bank reiterated that it will deepen foreign exchange market reforms and increase the flexibility of the yuan’s exchange rate, while guiding companies and financial institutions to be “risk neutral”.

(Reporting by Shanghai Newsroom; Editing by Kirsten Donovan)

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