Prior to the latest COVID-19 outbreak, China’s housing market had appeared on the cusp of a rebound. But movement restrictions and weaker consumer confidence have since caused home sales to slump, further weighing on the outlook for property construction. Coupled with the wider hit to services activity, this strengthens the case for additional policy support, which officials have signaled is forthcoming. There is a decent chance of a cut to reserve requirements in the coming days.
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