China's New Property Measures 'Still Too Small' to Reverse Downward Trend
Dow Jones
Yesterday
0905 GMT - China's new property measures, which include mortgage subsidies, are "still too small to reverse the downtrend," Barclays says in a research note. The government's strategy appears to be to use a relatively small subsidy to encourage a larger increase in home purchases, the bank says. But the key constraint behind the prolonged housing downturn and weak mortgage lending isn't "the cost of credit, but the demand for credit," Barclays says. "Households are unlikely to take on more debt when income expectations remain weak and confidence in the housing market has yet to recover."
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