A senior official from the China Banking and Insurance Regulatory Commission (CBIRC) says that local governments will be given the latitude to adjust their own property market policies amidst broader efforts to contain the economic impacts of the novel coronavirus outbreak.
“At present property finance policy has not been adjusted or changed,” said Xiao Yuanqi (肖远企), CBIRC’s chief risk officer, in an interview with Securities Daily.”However, [we] will further monitor and dynamically assess the real estate market financing situation.
“All local [governments] are permitted to make arrangements on the basis of their own disease-combating and local conditions, as long as they don’t breach related policies.”
The Chinese central bank recently announced that it would not resort to short-term economic stimulus via the domestic property market as part of efforts to contain the impacts of the novel coronavirus.
Xiao said that he anticipated a modest rise in the non-performing loan ratio in the short-term, but that ti would be limited, and that regulatory benchmarks would not be loosened.
“There will be know chain whatsoever to legality regulation, compliance regulation and prudential regulation,” said Xiao.