People's Bank of China: "No Major Concern for China's Economy... Real Estate Market Adjustment is Normal"

Vice Chairman Zhang Qingsong: "Fundamentals Stable in the Long Term"

A senior official of the People's Bank of China, the central bank, said he is "not greatly worried" about the sluggish domestic economy, particularly in the real estate sector.

On the 7th, Chinese economic media Caixin and major foreign news outlets reported that Jiang Qingsong, Deputy Governor of the People's Bank of China, stated at the 2nd Global Financial Leaders Investment Summit held in Hong Kong that "the fundamentals of the Chinese economy remain stable and promising in the long term despite short-term difficulties."

Deputy Governor Jiang said, "Global investors have some concerns about the pace of economic recovery, issues in the real estate market, and local government debt in China," but added, "Ask me if I am worried. No, I am not."

Shanghai Real Estate.
Photo by Asia Economy DB

He also commented on the real estate market.

Deputy Governor Jiang said, "It is impossible for the real estate market to continue growing indefinitely, and it is normal to undergo adjustments once a certain stage is reached," adding, "What needs to be addressed now is risk prevention and adjustment."

However, he emphasized, "There is still relatively large growth potential in China's urbanization," and "Every year, 10 million farmers move to cities, which reflects that housing demand remains strong."

He further stated, "Mega-cities will build public infrastructure, and aging areas within cities will be renovated and housing construction ensured to promote the health of the real estate market," asserting, "I remain optimistic about the future of China's real estate market."

Regarding local government debt issues, Deputy Governor Jiang said, "Most of the debt was issued in the eastern and central regions, where the scale of economic production and growth rates are higher than other areas," meaning "the ability to repay debt is strong."

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