China’s property risks ‘manageable’: PBOC governor
CHINA’S property sector risks are under control, central bank Governor Pan Gongsheng said, amid heightened concern over the financial health of another major developer in the troubled industry.
“We’re closely watching financial risks in certain sectors,” Pan said in an interview with state broadcaster China Central Television published on Friday (Nov 10). “Overall, financial risks of the property sector are manageable.”
He also pointed to strong demand among families for better homes as a factor supporting the real estate market’s long-term growth.
The comments underscore efforts by Chinese authorities to ease market worries over the property crisis, which is hindering an economic rebound. China Vanke, the country’s second-largest developer by contracted sales, said earlier this week it would repay its debts on time after getting signals of support from a local regulator and its biggest shareholder.
Recent debt troubles at China Evergrande Group and Country Garden Holdings both of which were previously the nation’s biggest builder, have weighed on sentiment as new-home sales continue to fall. On Tuesday, the People’s Bank of China held a seminar with other regulators and major builders, Shanghai-based media outlet Cailian reported.
Beijing is also paying attention to certain regions’ government debt risks, Pan said, without identifying any locales. Those governments need to shoulder their responsibilities and make all efforts to reduce the size of their burden, he said. Earlier this week, Pan vowed necessary emergency liquidity support to some areas.
China is providing support including guiding banks to lower the interest on debt held by local authorities, Pan said in the CCTV interview. BLOOMBERG
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