China’s Developers Surge After Interest Rate Cut
Bloomberg news staff Bonnie Cao reports on the central government interest rate cut and the immediate effects on the real estate market:
“All financial institutions must continue to strictly implement a differentiated housing credit policy to continue curbing property buying for spec
ulation and investment purposes,” the central bank said in its interest-rate statement yesterday.
Jinsong Du, a Hong Kong-based property panalyst at Credit Suisse Group AG, in a note to clients yesterday wrote investors or speculators will increasingly re-enter the housing market, pushing up housing prices “meaningfully in the next few months.”
“The momentum of the property market had already picked up as developers reported good June sales,” said Nicole Wong, a Hong Kong-based property analyst at CLSA Asia-Pacific Markets. “The second round of interest rates cut will just drive the momentum better and better.”