All the Tools the PBOC Has to Support China’s Property Sector
- Focus of latest relending program is excess housing inventory
- Central bank programs can be expanded if needed: analysts
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The People’s Bank of China is the key actor in Beijing’s intensifying effort to shore up the housing market, pumping in cash through a variety of programs with more funds available if they’re needed.
The PBOC’s latest tool is likely the most powerful so far, making 300 billion yuan ($41 billion) of cheap credit available for banks to fund local-government purchases of unsold homes. The goal is to chip away at the country’s excess housing stock and ease cashflow strains for developers.