The People’s Bank of China issued a third-quarter monetary policy implementation report on Saturday
It reaffirmed that the real estate long-term management mechanism should be implemented in accordance with the basic principles of “street policy”, and real estate should not be used as a means of stimulating the economy in the short term.
The report shows that since the third quarter, the real estate market has been running smoothly, the growth rate of real estate loans has fallen steadily, the increase in property prices has softened, and the growth rate of real estate development investment and new construction has declined steadily.
Real estate loan growth slows
At the end of September this year, the balance of real estate loans of major financial institutions (including foreign capital) in the country was 43.3 trillion yuan, up 15.6% year-on-year, and the growth rate was down 1.5 percentage points from the first half of the year. The balance of real estate accounts for 28.9% of the balance of various loans.
The report also believes that since the third quarter, China’s economic operation has been generally stable, structural adjustment has been solidly promoted, investment has stabilized and stabilized, consumption and employment have been generally stable, and the structural characteristics of rising prices have become obvious. At the same time, the situation at home and abroad is complicated and severe, and difficulties and challenges are increasing. The downward pressure on the economy continues to increase.
In the next stage, we must focus on the three tasks of serving the real economy, preventing and controlling financial risks, and deepening financial reforms, implementing sound monetary policies, strengthening counter-cyclical adjustments, strengthening structural adjustments, maintaining a reasonable liquidity and a reasonable growth in social financing scale. Give play to the role of credit policy in promoting economic restructuring, properly respond to short-term downward pressure on the economy, and resolutely do not engage in “big flood irrigation.”
The report also said that the current economic operation in China is generally balanced, the overall supply and demand are generally balanced, and there is no basis for sustained inflation or deflation
It is expected that after the second half of 2020, the impact of the hikes on the industrial producers’ PPI will be less than this year and will be more stable. The consumer price index (CPI) will gradually fade due to the rise in food prices. The gap is expected to narrow.
In addition, the report revealed that since November last year, the PBOC issued a total of 160 billion yuan of central bank bills in Hong Kong, establishing a normal mechanism for issuing central bank bills in Hong Kong. As of the end of October this year, the balance of Hong Kong’s RMB central bank bills was 80 billion yuan.