China needs a narrative that property selling prices are likely to rise, Nomura’s Koo says

Key Points

China desires to persuade persons that residence prices are on their way up in buy for growth to choose up, Richard Koo, chief economist at Nomura, instructed CNBC’s Steve Sedgwick.
“For them to arrive back again and borrow dollars, we require a narrative that says, ok, this is the bottom of the price ranges, the charges will start off likely up from this issue onwards,” Koo mentioned.
He included that a explanation why Beijing is unwilling to stimulate the financial state now is that authorities watch China’s prior assist application as a failure.

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