the Wall Street Journal reported
that China's central bank and top banking regulator circulated a memo to financial institutions unwinding previous restrictions on lending to the heavily indebted housing sector. The reversal of previous policies that had been intended to discipline the bloated housing sector was signed off on by Chinese leader Xi Jinping, the WSJ wrote.
The move was widely interpreted as an indication that the Chinese government is turning its attention to boosting the flagging economy, and is willing to use traditional tools such as boosting debt and investment.The news moved global markets, with housing stocks in Hong Kong and on the mainland surging.
Major producers of commodities, such as iron ore miner BHP Group of Australia, and other suppliers of the key ingredient for steel,Whether the shift in government posture on supporting the housing market means that a softening of the zero-COVID policy could come next.— have been a major drag on the economy.
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And ICBC 601166 is under pressure. Banks will be forced to hold the bag.