SHANGHAI: China’s yuan eased slightly against the dollar on Monday, as investors studied Beijing’s latest measures to rescue its beleaguered property sector, which has been a key drag on the world’s second-largest economy.
Beijing announced “historic” steps on Friday to stabilise its crisis-hit property sector, with the central bank facilitating 1 trillion yuan ($138.30 billion) in extra funding and easing mortgage rules, and local governments set to buy some apartments.
But analysts said details of how the plan would work were still being awaited.
“After Friday’s announcement, there are a few factors yet to be disclosed and verified before we treat this as a substantial pivot in governmental policy,” analysts at Barclays said in a note.
They said they would be looking to the extent of the government guarantee, the pricing mechanism and the policy life of such measures to be implemented.
Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1042 per dollar, 3 pips firmer than the previous fix of 7.1045.
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