China Property Recovery Up to a Year Away, Ex-PBOC Adviser Says
- Li Daokui estimates developers need 100b yuan loan support
- Interest rate cut less important than fiscal, housing policy
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China’s property market could take as long as a year to recover, according to a former central bank adviser, who’s urging Beijing to do more to encourage lending to developers to halt the spread of defaults.
Sales in China’s largest cities could return to growth in the next four to six months, but in smaller cities “it will take anything to between six months to one year for a good recovery,” Li Daokui, a former member of the People’s Bank of China monetary policy committee, said in an interview.