Chinese-Style Quantitative Easing Eyed for Property Fix
11/29/2023 06:48
China’s deepening property rout is pushing the nation’s central bank toward a style of policy it has long criticized: Quantitative easing.
China’s deepening property rout is pushing the nation’s central bank toward a style of policy it has long criticized: Quantitative easing.
Bloomberg News has reported that the People’s Bank of China may provide at least 1 trillion yuan ($140 billion) in low-cost funding to construction projects via so-called Pledged Supplemental Lending. Under that program, the central bank has provided cheap long-term cash to policy banks (by accepting their loans as collateral) to fund lending to the housing and infrastructure sectors.