China’s potential growth to remain within reasonable range; yuan to stay at balanced level; real estate sales show marginal improvement – PBOC governor Yi Gang

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The potential growth of Chinese economy will be maintained within a reasonable range, said Yi Gang, Governor of the PBOC, at Hong Kong Global Financial Leaders’ Investment Summit.

China has a super large market, there is more room for urbanization and middle-income class’s consumption demand is growing steadily, he said.

China has the world’s largest groups of engineers and technicians and has built a complete modern industrial system and a high-quality infrastructure network, he added.

The rapid development of China’s technology and innovation and the deepening supply-side reforms will continuously increase the growth momentum, he added.

The Chinese yuan’s exchange rate will maintain at a reasonable and balanced level and the currency’s value and purchasing power will remain stable, said Yi.

The yuan’s exchange rate against a basket of currencies have been stable so far this year due to the long-term sound fundamentals of Chinese economy and China’s normalized monetary policy in recent years, he said.

“Although the yuan depreciated against the US dollar, it has strengthened against other currencies,” he said.

When talking about China’s real estate sector, Yi said that real estate sales and loan delivery to the sector have recently shown marginal improvement.

“As China’s urbanization proceeds, we believe the real estate market will be able to maintain stable and healthy development,” said Yi.

The PBOC has provided active support to the real estate sector’s healthy development, lowered home mortgage rates and down payment requirement and encouraged banks to use special loans for ensuring delivery of ongoing property projects and the central bank supports the rigid housing needs and the demand for improving housing conditions, Yi said.