- Analytics
- News and Tools
- Market News
- China’s additional stimulus to homebuilders unlikely to drive a strong recovery – Fitch Ratings
China’s additional stimulus to homebuilders unlikely to drive a strong recovery – Fitch Ratings
Commenting on China’s latest support measures to stabilize the country’s property markets, Fitch Ratings said that these policy reforms are unlikely to drive a strong recovery in the sector.
Key takeaways
“We believe this is a sign of the government providing greater support to private developers that are not in distress to avoid further defaults in the sector that could increase the number of stalled residential projects.”
“More private developers that are not in distress may benefit from similar funding support in the near term, supporting their liquidity.”
“However, the programme’s capacity to improve their debt maturity coverages significantly will depend on its scale.”
“Such policies may provide liquidity relief for some developers, but we still expect the recovery in housing sales to be the key to a sustainable improvement in developers’ liquidity more broadly.”
Market reaction
At the time of writing, USD/CNY is cutting losses to trade near 6.8510 while the AUD/USD pair clings to sizeable gains around 0.6970.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
