The People’s Bank of China’s (PBOC) Zhang Qingsong emphasized the resilience of China’s economy and the country’s government debt levels, which are within international norms. Speaking at a financial summit in Hong Kong today, Zhang addressed concerns regarding China’s slow economic recovery and its troubled property market.
Despite recognizing structural issues with local debts, Zhang expressed confidence in the eastern and central provinces’ ability to manage their financial obligations. He proposed that market forces should be allowed to play out and intervention should only occur when there is a significant deviation from long-term trends.
Zhang also addressed the issue of local government borrowings. While acknowledging the challenges, he underscored PBOC’s commitment to prevent sharp downturns in mainland home prices. The strategies adopted aim to ensure stability and promote high-quality development within the real estate sector.
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