Beijing yesterday announced further relaxation of mortgage rules for the purchase of second homes, and shortening of waive period for the sales tax.
HSBC Global Research said these measures did not come as a complete surprise given weaker economic data, especially falling housing sales. This move is part of Beijing's broader package of policies to stabilise economic growth and check disinflationary pressures.
The resaerch house noted that the PBoC Governor Zhou Xiaochuan said during the weekend Bo'ao conference that the central bank will monitor deflation risks and that it has sufficient price and quantity tools at its disposal.
HSBC believes policy-makers are increasingly concerned about weakening growth and inflation, and will deploy more monetary and fiscal easing measures in the coming weeks. It expects a 50bps cut to the policy rate and 200bps cut to the reserve ratio in 2015 and look for the next cut to take place in the coming months, if not weeks.
31/03/2015 11:44
[I-bank focus]China eases mortgage rules to stabilise growth
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