PBOC said they promote the healthy development of the real estate market

The People's Bank of China (PBOC) statement after its fourth-quarter monetary policy committee meeting on Saturday is the latest sign that Chinese regulators are marginally loosening restrictions on the real estate sector to avoid a hard landing. Reiterating China's annual Central Economic Labor Conference in early December, the PBOC said it would prioritize economic stability amid an increasingly violent external environment and a relentless global pandemic. Goldman Sachs analysts said, "The PBOC has been more cautious about its growth outlook, expressing its intention to use broad and targeted policy tools to more proactively support the real economy, which has eased pressure on the real estate sector on the margin. Longer-term liquidity through the central bank's RRR cuts and a variety of loan facilities. We expect budgetary fiscal spending to be more supportive of growth compared to 2021, and local governments to relax real estate policies at the local level." The PBOC said it will keep monetary policy flexible and appropriate and liquidity reasonably abundant. It will strengthen support for the real economy, with a bias towards small companies. The central bank reiterated that it will deepen reforms in the forex market, increase the flexibility of the yuan's exchange rate and guide companies and financial institutions to be "risk-neutral."