Here it comes! From Reuters:
China’s central bank has asked commercial banks to quicken the pace of extending home mortgages and to set mortgage rates at reasonable levels, four sources told Reuters on Tuesday, underlining efforts to support the cooling property market.
The sources said the request came at a meeting between the People’s Bank of China and some commercial banks on Monday.
Tight mortgages are considered one of reasons for the cooling of property market this year, as banks have raised mortgage rates for first-time home buyers or slowed the pace of extending mortgages due to tighter liquidity.
And from MNI:
The Chinese banking regulator has told the country’s banks to continue extending mortgage loans amid growing fears that the property market is heading for a fall.
It’s not an outright about turn by the looks of things (no RRR cut for example) but given this will combine with supply fears in the short term, taking profits on iron ore shorts might be prudent. Dalian up 1.6% today last I looked.
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