Property stimulus tea leaves, BRICS expansion

The PBOC surprised analysts by keeping the benchmark for mortgage pricing unchanged this week. President Xi’s catch-phrase “houses are for living in, not for speculation”, widely associated with tight property controls, also reappeared in state media. But we think it is too soon to conclude that the leadership has abandoned efforts to support housing demand. 

Meanwhile, although China scored a diplomatic win with the expansion of the BRICS, it is still not clear what practical purpose the bloc serves. Furthermore, India is likely to veto any BRICS proposal that could undermine its own interests, which increasingly are diverging from China's.