This from media in Hong Kong on a Friday announcement from the People’s Bank of China and the China Banking and Insurance Regulatory Commission. Standard HK citing ” people, asking not to be identified as the matter is private”.

  • a notice to financial institutions laying out plans to ensure the “stable and healthy development” of the property sector
  • Unlike previous piecemeal steps, the latest notice includes 16 measures that range from addressing the liquidity crisis faced by developers to loosening down-payment requirements for homebuyers
  • developers’ outstanding bank loans and trust borrowings due within the next six months can be extended for a year
  • while repayment on their bonds can also be extended or swapped through negotiations

The package would be the most comprehensive addressing of the property sector collapse and adds to moves to ease restrictions on COVID outbreaks also. This easing of the two biggest headwinds to China’s economy is a positive sign for China and China-proxy trades.

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