China's Central Bank announced a reduction of 0.25% in the reserve requirement ratio in the banking system from Mar 27 (excluded those financial organizations with a 5% reserve ratio). This adjustment will make the China-weighted average RRR for financial institutions reach around 7.6%.

Although the adjustment applies to all, the real estate industry is the most favorable party to have more loose terms on financing.

This action is to stabilize the economy, reduce financial capital costs, and reduce the financing interest rate of the private business units.

Further interest rate reduction is not excluded either after this adjustment.

China's government has to do all to try to make the real estate industry sustainable.