At a meeting of the party’s Central Politburo on the 28th, the Communist Party of China gave a grim economic outlook but did not come up with any new stimulus measures, and held local governments accountable for completing the housing project amid widespread refusal to repay mortgages. asked to bear
announced following the meetingstatementsaid China needs to achieve the “best possible” economic growth this year. On the other hand, regarding the new coronavirus countermeasures, he announced that he would continue the “zero corona” policy to thoroughly control infection. He also urged efforts to stabilize employment and prices to keep the economy running “within reason.”
The statement did not mention an annual growth target of around 5.5%. Economists consider the target unattainable this year. “The statement has implications for the shortfall in the annual target,” said Liu Peiqian, chief China economist at NatWest Group. There is,” he said.
Comparison with last Politburo meeting on the economy
Source: Official statements
The Politburo said the government will try to spur demand by maintaining “reasonably ample” liquidity and boosting corporate credit. It also said it would help local governments make full use of the special bond issuance quota.
In a statement, the Politburo clarified that local governments are responsible for ensuring the handover of housing projects. While reiterating the recognition that “housing is for living, not for speculation,” the government said the stability of the real estate market must be maintained.
In China, where the real estate recession continues, there is a growing movement among homebuyers to refuse to repay mortgages on the grounds that the home they bought with a loan is unfinished.
Original title:China’s Politburo Signals No Big Stimulus Despite Slowdown (1)、China’s Politburo Signals No Big Stimulus Despite Slowdown (2)(excerpt)
(I will add and update the views of market players etc.)
