BNP Paribas: "Chinese Authorities to Significantly Ease Real Estate Regulations"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] There are expectations that the Chinese authorities will significantly ease real estate regulations.

On the 23rd (local time), according to major foreign media, Zhang Charles Sangbor, Head of Emerging Market Bonds at BNP Paribas Asset Management, said, "There is a major turning point in policy, and considerable deregulation will occur."

He also described the Chinese real estate sector as "positive."

Sangbor diagnosed, "Because the Chinese government wanted deleveraging (debt reduction), the real estate market was under pressure, and the authorities' goals have been somewhat achieved." He added, "The authorities want to prevent the entire industry from becoming risky."

Meanwhile, Wei Yunding, former Monetary Policy Committee member of the People's Bank of China, said, "For stabilizing the Chinese economy, interest rate cuts alone are not sufficient, and more proactive fiscal policies are needed."

According to Bloomberg News, former committee member Wei stated, "In the current economic situation, the role of the People's Bank of China is limited," and "I want to emphasize the importance of fiscal policy."

The People's Bank of China lowered the Loan Prime Rate (LPR), the effective benchmark interest rate, for two consecutive months in December last year and January this year. This is interpreted as a response to the sharp slowdown in the real estate market, sluggish investment, and the spread of COVID-19, which caused economic growth to rapidly decelerate in recent months. China's economic growth rate for the fourth quarter of last year was only 4%.

This content was produced with the assistance of AI translation services.