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“The standard on home loans will not be relaxed, but the scale of such loans could go up a bit,” he said.
Banks could also have more freedom to lend to genuine homebuyers rather than speculators, and healthier developers could get more support, analysts said.
“Amid the worsening slowdown, we expect Beijing to step up fiscal and monetary easing measures, though it will largely stick to its tightening stance in real estate and high-carbon ones,” said Ting Lu, an economist. Nomura’s chief for China in a statement. qualification.
However, some local governments may introduce some minor relaxation measures, focusing on lifting local restrictions and adding some subsidies, Lu said.
Meanwhile, the PBOC has funneled more credit to the manufacturing sector in recent months, at the expense of the real estate sector.
Medium and long-term loans outstanding to the manufacturing sector increased 41.6% year-on-year in June, accelerating from a 24.7% increase a year earlier, while the growth of outstanding loans to the real estate sector slowed to 9.5% in June from 13.1% a year earlier, central bank data showed.
(Reporting by Kevin Yao; Editing by Kim Coghill)