A view of the hall before the start of the China Development Forum in Beijing on March 24, 2024. Photo: VCG

China's property market is showing positive signs, with a solid foundation for long-term stable development and a limited impact on the financial system, China's central bank governor said at the China Development Forum (CDF) on Monday.

Pan Gongsheng, governor of the People's Bank of China (PBC), the central bank, made the remarks at the CDF where he shared his views on China's financial stability, opening-up plans and overall economic outlook.

Pan said that China's financial system is operating steadily and has strong resistance to risks. Overall, government debt is at low and moderate levels compared to international standards and policies to address local government debt risks are showing an effect.

China has also established an effective financial safety net, including improved governance of financial institutions, strengthened financial oversight and enhanced legal protection, Pan said.

Meanwhile, China is actively taking measures to stabilize the real estate market. Efforts have been made to build city-level real estate financing coordination mechanisms and enhance the efficiency of the new white list mechanism, to meet the financing needs of real estate enterprises.

Some major Chinese cities have moved to relax curbs on property buying, enabling permanent and temporary residents to purchase homes on much easier terms. Some cities including Guangzhou in South China's Guangdong Province have removed the purchase restrictions on larger homes.

Pan also stressed that China will continue opening up the financial sector, which is vital for serving the real economy and improving China's international competitiveness.

Addressing the overall economic outlook, Pan said that China's economy is maintaining a positive trend of recovery and has the capacity to achieve a growth target of around 5 percent this year.

China's economy is continuing to gain momentum following a robust start in the first two months of 2024, with industrial output, fixed-asset investment and retail sales all posting better-than-expected results, official data showed last week.

Pan noted that China has stepped up policy adjustments, which are showing an effect, and there is still abundant room for maneuver.

The PBC will implement prudent monetary policies in a flexible and targeted manner to keep prices stable, Pan said.

The PBC announced a 50-basis-point cut in the reserve requirement ratio (RRR) in January, providing the market with about 1 trillion yuan ($141.05 billion) of long-term liquidity.

Global Times