BNP Paribas Asset Management on China’s real estate sector
- “We are of the view that we are at a major inflection point in terms of policy and we are likely to see some significant easing,”
- “We are involved in the sector and we are positive in the sector. We have built this position over the last couple of months.”
- “The property market had been under pressure because (the government) wanted to deleverage and to some extent they achieved that,”
- “Now China wants to make sure that the rest of the sector is not at risk.”
The background to this is stricter rules were imposed on the sector in 2020 and have contributed to difficulties meeting debt repayment/servicing. The sector is currently contracting, which has global implications not only via contagion impacts but due the importance of China’s real estate in the global economy.
Lemme see if I can dig up a link.
This article was originally published by Forexlive.com. Read the original article here.