(Bloomberg) -- China’s central bank vowed to ensure a “healthy property market” after Evergrande’s debt crisis roiled global markets.
The People’s Bank of China will work to safeguard the healthy development of the real-estate market and protect home buyers’ lawful rights, the bank’s monetary policy committee said at its quarterly meeting Friday, according to a statement released Monday.
The statement comes as one of the largest property developers in China, China Evergrande Group, is buckling under more than $300 billion in liabilities and is on the brink of collapsing. That slide is sending shocks across global financial markets and any collapse could leave 1.5 million buyers waiting for finished homes.
The central bank will also step up the coordination of monetary policy with fiscal policy as well as with industrial policies and regulations to achieve a balance between supporting the economy with finance and preventing risks, the committee chaired by Governor Yi Gang said.
The PBOC pledged to push real lending rates lower and said China’s economic recovery is “still not solid and not balanced.” It reiterated that overall credit growth will become more stable to keep the macro leverage ratio steady.
The PBOC kept the monetary policy stance largely unchanged, vowing to make good cross-cyclical policy design and keep liquidity reasonably ample.
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