Central bank cuts rates and reserve ratio again
Effective 23 December 2008, the People＇s Bank of China reduced the one-year benchmark deposit and lending rates by 0.27 of a percentage point. Rates for other terms were adjusted accordingly. Individual Housing Provident Fund lending rates were also cut by 18 basis points. Effective 25 December 2008, the required reserve ratio for financial institutions was reduced by 0.5 of a percentage point to 14.5%.
Guangzhou new housing price continued to drop in November
According to statistics released by Bureau of Land Resources and Housing Management of Guangzhou Municipality, the average sales price of new housing fell 10.0% y-o-y and 0.8% m-o-m to RMB 9,394 psm across ten districts in November. The total sold area of new housing amounted to 539,600 sm, down 6.7% y-o-y, yet up 50.6% m-o-m.
Construction of Shui-Guan-Shen Rapid Transit System commences
On 21 December, the Shui-Guan-Shen (Guangzhou-Dongguan-Shenzhen) Rapid Transit System, a sub-project of PRD intercity railway network project, started construction. The 86.62-km railway will start from Yuzhu Station of Metro Line 5 in Guangzhou, passing through Guangzhou Development Zone, Houjie, Humen, Chang＇an as well as other counties in Dongguan, then reaching the Shenzhen Airport Terminal. It is expected to open to the public by 2011, and is eventually planned to link with the Shenzhen Futian CBD further on.