Policymakers are mulling a new property stimulus package, including mortgage subsidies for new homebuyers. But this is unlikely to revive demand, as most households remain reluctant to buy in a falling market.
China’s 10-year bond yield dropped below Japan’s for the first time since China's bond pricing was liberalised in the mid-1990s. We expect it to decline further as deflation persists and the PBOC steps up bond purchases alongside wider monetary easing.
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