Reported 7 months ago
Central Bank Governor Yang Jinlong raised the deposit reserve ratio and implemented selective credit control measures for the housing market to avoid deepening inflation expectations while ensuring economic growth, focusing on stocks but pointing directly at the housing market. Despite the current economic growth rate estimated at 3.77% and a Consumer Price Index (CPI) year-on-year increase of 2.12%, the central bank aims to manage expectations to prevent rising prices rather than directly controlling prices, as shown through the newly implemented credit control measures specifically targeting housing loans. The market reaction will ultimately determine the effectiveness of these policies in curbing house price increases and speculative activities.
Source: YAHOO