Pimco Doubts China Property Market Recovery Without More Funding
- Fund manager says it made specific selection of junk notes
- Chang calls for “nationwide messaging” in housing stimulus
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China’s beleaguered property sector needs a more comprehensive policy approach and a wider usage of different funding channels for a meaningful recovery, according to Pacific Investment Management Co.
“Confidence is elusive so far and may require nationwide messaging rather than city-specific announcements,” Stephen Chang, managing director and portfolio manager at Pimco Asia Ltd., said in an interview. A full use of the so-called three arrows — the capital-raising tools of bond financing, bank loans, and equity funding — has been lacking, with a “near absence” of the latter, he said.