China’s leaders have hinted that they will resist calls for aggressive measures to prop up the nation’s flagging property market, the Financial Times reported, pointing to a commentary piece published on Monday by a state media organ.
It noted that the People’s Daily, the Communist party’s main mouthpiece, said in a commentary that the property market was in a “normal adjustment period” and that domestic developers, speculators and foreign banks have been exaggerating the slowdown in a bid to force authorities into adopting strong stimulus policies.
“We must be on guard against the ulterior motives of those who are singing short the market – to destabilize the market, mislead policy and satisfy their selfish interests,” the article said.
The commentary accused developers of trying to pressure Beijing into relaxing house purchase restrictions, loosening credit and implementing other measures to boost the market.
“This way, developers can continue to enjoy profits from high prices and extend their fragile funding chains and house hoarders can also see the wealth they’re sitting on keep increasing,” the paper said.
Foreign investment banks also came in for criticism, with analysts at Morgan Stanley and Société Générale singled out for pessimistic assessments, the FT noted.
“As for foreign capital planning to speculate on the bottoming out of China’s property market, the practice of singing short the market while actually taking long bets has been their favorite trick for many years and is no longer surprising,” the People’s Daily commentary said.
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