China Evergrande Update: PBOC vows ‘healthy’ property market

Dhwani Mehta FXStreet

The People’s Bank of China (PBOC) will try is best to safeguard the healthy development of the real estate market and protect home buyers’ lawful rights, Bloomberg reports key highlights from the central bank’s quarterly meeting held on Friday.

Additional takeaways

“Will step up efforts to coordinate monetary, fiscal, industrial policies and regulations to support the economy with finance and prevent risks. “

“Pledge to drive real lending rates lower. “

On Monday, Reuters reported that the Shenzhen government is investigating a unit of Evergrande.

According to a letter from the city’s financial regulator to investors, “relevant departments of the Shenzhen government have gathered public opinions about Evergrande Wealth and are launching a thorough investigation into related issues of the company.”

Market reaction

Risk-off flows have returned to markets on resurfacing Evergrande fears and amidst the deadlock on the US debt ceiling.

AUD/USD is bouncing off lows, having found support from the upbeat Australian Retail Sales data.

USD/CNH prints six-day downtrend as PBOC battles China, Evergrande pessimism

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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