A Chinese national flag on the Pearl River in Guangzhou, Guangdong province, China. Picture: REUTERS
Such a move could drive an even sharper build-up in household debt and risk property bubbles. The central bank reportedly told lenders in June not to lower mortgage rates further, but market watchers believe some cash-strapped local governments may be considering loosening restrictions on home buyers.
Chinese and US trade negotiators met in Shanghai on Tuesday for their first face-to-face talks since the two sides agreed on a tariff ceasefire late in June, though market expectations for any progress are low. "We should adhere to the principle that housing is used for living, not for speculation, implement the long-term mechanism for real estate, and will not use real estate as a short-term means of stimulating the economy," the Politburo said.