Goldman with the wrap.
Chinese policymakers introduced new easing measures on May 17 to support the housing market, including policy support to secure housing delivery announced at the national video conference led by Vice Premier He Lifeng, a new round of mortgage easing announced by the PBOC, as well as subsequent funding support for inventory digestion announced at the State Council press conference.
Compared with our previous expectations, although the supply-side overall funding scale is above our expectations,it has less focus on saleable inventory (estimated 4% deduction vs. 10%+ needed in our view) and demand support is also below our expectations; hence in our view the measures might be insufficient to improve the near-term supply and demand outlook and thus stabilize the property price outlook, although they should be helpful in the medium- to long-term.
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