From Bloomberg, October 16:
China Boosts Support for Unfinished Properties to $562 Billion
- To widen credit support under “white list” program to 4 trillion yuan
- Aiming to renovate 1 million houses in “urban villages”
- Housing market measures have made an impact so far, Ni says
- Chinese property stocks, iron ore futures slide as briefing underwhelms
Thank you for joining us. Here are the key takeaways from the briefing in China on the property market, by speakers including Housing Minister Ni Hong:China is expanding a “white list” program that allows unfinished housing projects and developers to access credit. Loans approved under this program will reach 4 trillion yuan by the end of the year, almost double what they are now....****....Investors were largely underwhelmed by the briefing, partly due to a lack of fresh, bold steps, and the absence of a specific figure for stimulus. A gauge of developers tracked by Bloomberg had fallen 8.3% by 11:30 a.m. local time, while iron ore and steel futures were lower in the commodities market....
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For the last two years we have watched base and industrial metals jump on each Chinese stimulus announcement.
China can't allow new construction until the current oversupply is taken up. The situation is analogous to reconstructing bridges that fall down; a boost to GDP but a drag on actual wealth-building.
China can't allow new construction until the current oversupply is taken up. The situation is analogous to reconstructing bridges that fall down; a boost to GDP but a drag on actual wealth-building.
Also at Bloomberg, October 16/17:
- Push to tackle property glut won’t help steel demand: analyst
- Base metals also fall as investors mull China stimulus plan
