[ET Net News Agency, 2 January 2020] The PBOC yesterday announced to lower the RRR by
0.5ppt to unleash more than RMB800bn capital into the market, effective from 6 January.
Jefferies Research believes the improved liquidity would benefit the property sector
with lower borrowing cost to developers/home buyers, and may potentially enlarge the loan
book to the sector.
Although it doesn't expect a strong boost on property sales, Jefferies believes the cut
would help to stabilize the current relatively weak physical market, especially on ASP.
Although it sees good near-term profit-taking opportunity after the recent sector rally
(+25% on average in 4Q 2019), Jefferies remains bullish on the China property sector. (KL)