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Central Bank of China Pledges to ‘Maintain Healthy Development of Real Estate Market’

Banco central de China: "Mantendremos el desarrollo saludable del mercado inmobiliario"

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The People’s Bank of China (PBOC, central) set a target to maintain a “healthy development” of the country’s real estate market at a time when the sector is plunged into uncertainty by the crisis of the indebted giant Evergrande.

In a statement released Monday, the PBOC reviews the issues discussed during the recent monetary policy meeting ahead of the third quarter, and makes a brief mention of the aforementioned target, though without directly citing either Evergrande or the sector’s problems.

“We will maintain the healthy development of the real estate market and protect the legitimate rights and interests of real estate clients,” is all the BPC had to say on the matter.

However, and despite the brief reference, it is one of the few public statements from a Chinese state institution regarding the real estate sector since international media and markets began to pay more attention to Evergrande’s liquidity and debt problems.

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The central bank assured that its monetary policy will remain “prudent” and should also be “flexible, precise, reasonable and moderate.”

Since last 15th, the PBOC has injected a total of 1.46 trillion yuan ($226.202 billion) into the financial system to “ensure liquidity stability” during the end of the third quarter.