Beijing may loosen property market restrictions to boost slowing economy
Jun 11, 2019 (China Knowledge) - Beijing may look to loosen restrictions put in place to keep property prices in check as it continues its uphill battle to maintain economic growth amid an escalating trade war.
The property sector and its related industries account for more than 25% of China’s GDP and can be helped to offset the country’s deteriorating trade outlook and will likely be welcomed after exports showed a 2.7% contraction in April.
Exports, consumption and investment are regarded as the three pillars of China’s economy and with exports on the decline, more room will be given to the other segments to perform and real estate remains as a major component of the investment pillar. In 2017, housing sales in the country totaled RMB 13.37 trillion, accounting for 16.4% of the country’s GDP.
Analysts are now expecting the People’s Bank of China (PBOC) to initiate quarter-point rate cuts in September and December to support the economy. The rate cuts will echo similar cuts expected to be conducted by the Federal Reserve this year to boost the US economy amid weakening outlooks and a US stock market decline.
In addition, China will also likely introduce more consumption stimulus and provide increased support for infrastructure and property investments.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI