Real estate sector in China likely to see “significant easing” in policies says BNP Paribas Assets Management. The comments comes after months of entering long position in the sector’s debt.
“We are of the view that we are at a major inflection point in terms of policy and we are likely to see some significant easing,” said Jean Charles Sambor, head of emerging market fixed income at BNP Paribas Asset Management (BNPPAM) in London.
“We are involved in the sector and we are positive in the sector. We have built this position over the last couple of months.”
The CSI China Mainland Real Estate Index fell as much as 28% last year before closing down 15%, with stocks in China Evergrande, one of the biggest developers in the midst of a restructuring, down 89% in 2021.
Sambor comments included, “The property market had been under pressure because (the government) wanted to deleverage and to some extent they achieved that.”
