China’s Economic Stimulus Plan Helps Credit Sentiment: Lucror

Published 24 September 2024, 02:57:32.643 GMT
By Trista Xinyi Luo

(Bloomberg) -- The Chinese central bank’s sizable monetary easing would boost the macro environment and help improve investor sentiment toward Chinese credits, says Lucror Analytics.

* “I think it’s less of an impact for property developers fundamentally, but good news for macro,” said Leonard Law, senior credit analyst at Lucror Analytics

** He added that the move to reduce mortgage rates and second home down-payment would only have a marginal impact on lifting property sales, and hence would not “meaningfully alter the credit profiles of property developers”

* NOTE: China’s central bank governor said outstanding mortgage rates for individual borrowers will be cut by an average of 0.5 percentage point

** The minimum down-payment ratio on second home purchases will be lowered to 15% from 25%