China’s Property Sector Policy Measures May Not Boost Real Economy Growth

Introduction

China’s recent policy measures aimed at stabilizing the property sector will likely generate demand, but not enough to boost growth in the real economy, according to analysts.

Policy Measures

Starting Sept. 25, households will be able to negotiate with lenders to lower their mortgage interest rates to near the benchmark level of 4.2%. On average, borrowers could save 80 basis points, or eight-tenths of a percentage point, according to state-owned newspaper Securities Times.