[Outlook-in-Five] Turning Point for China Property Sector

In our latest episode, we take a closer look at China’s property sector, and how recent policy changes have brought about renewed optimism amongst investors. Notably, the biggest highlight, was the provision of up to CNY500b of loans to local governments for the purchase of unsold completed properties to be converted into affordable housing. 60% of this will be funded by a low cost 1-year PBoC relending facility which is extendable 4 times.  Although the scale of the facility and the absence of central government involvement have underwhelmed the market’s earlier expectations of CNY1 trillion, other demand-side easing measures such as the reduction of mortgage downpayment ratios to historical low levels of 15% for first homes and 25% for second homes have surprised positively. Tune in to our latest episode with Boh Hui Ling, Senior Fixed Income Research Analyst, to find out more about how these policy developments might impact investors and the outlook ahead for China’s property sector.