Chinese Central Bank Stresses Effective Implementation of Macro-prudential Regulation for Real Estate Finance

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The People’s Bank of China (PBOC) has stressed the need for effective implementation of macro-prudential financial regulation in relation to the real estate market.

“We must hold the position that houses are for occupation, not speculation,” said PBOC officials on 4 March just after the convening of its 2022 Financial Markets Work Teleconference (2022年金融市场工作电视会议).

“[We must] appropriately and effectively implement the macro-prudential regulatory system for real estate finance, expand financial support for residential leasing, implement policies in response to individual municipal conditions, and expedite positive cycles and healthy development of the real estate sector.”

The meeting indicated that 2022 would see “accelerated establishment of systems for finance to effectively support the real economy; guidance of financial institutions in optimisation of their financing structure, and better support for key areas and weak linkages in the national economy.”

China’s financial authorities will also push for the “steady and healthy development in money markets, the gold market, the interbank derivatives market, and asset-backed securities operations.”