X @外汇交易员

Government Intervention & Policy Measures - China is considering new measures to revive its struggling property market, including nationwide mortgage subsidies for first-time homebuyers [1] - Other measures under discussion include raising income tax rebates for mortgage borrowers and lowering housing transaction costs [1] - Plans are to be discussed starting at least in the third quarter, as property sales and prices continue to decline; specific implementation timelines and policies remain uncertain [1] Market Trends & Consumer Behavior - Calls for stronger policy support for the residential property market have grown after earlier measures to lower lending thresholds and ease restrictions on multiple home purchases failed to halt the decline [1] - Chinese consumers remain in a deleveraging phase, impacted by weak income expectations and increased uncertainty from the economic slowdown [1] - Outstanding housing mortgage balances fell to 374 trillion RMB in the second and third quarters, down 3.9% from the peak in early 2023 [1] Banking Sector Challenges - Efforts to lower borrowing costs, including the removal of the nationwide mortgage rate floor for individual homebuyers, have been constrained by the continued deterioration of Chinese banks' profitability and asset quality [1] - Commercial banks' net interest margin had fallen to 1.42% by the end of September, remaining below the 1.8% reasonable profitability threshold for over two years [1]