People’s Bank of China to Support Hard Landing of Real Estate Developer Fallout
Posted on 09/27/2021
People’s Bank of China (PBOC) injected a net 100 billion yuan in open market operations. The Chinese central bank set the yuan reference rate at 6.46695 against the U.S. dollar.
Furthermore, the central bank vowed to ensure a “healthy property market” after China Evergrande Group’s debt crisis roiled global markets. PBOC made no mention of Evergrande in a statement posted to its website. People’s Bank of China also plans to push the real lending rates to fall further in a bid to stabilize the economy as the recovery is not solid and not balanced, according to a PBOC statement. It is likely the Chinese government will watch over the social fallout of unfinished housing units in mainland China.
After the PBOC declared that all virtual currency-related activities illegal including trading, Huobi, one of the world’s largest cryptocurrency exchanges, said it has ceased new account openings for mainland Chinese users. Huobi will also gradually retire existing accounts of mainland Chinese users by midnight on December 31, 2021.