China attacks its housing bubble

Wednesday, 8 February 2017

Cross-posted from Investing in Chinese Stocks.

The PBoC hiked before Spring Festival and followed with another hike on February 3. This has been dubbed a “precision strike” on the housing market because it wipes out the bank’s incentive to offer mortgage discount, pushing the interest rate on discounted mortgages below the market rate for similar debt.

iFeng: 央行之后：一夜之间楼市又传来两大消息！

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.