BHP's CEO, Mike Henry, expressed optimism about a rebound in China's property sector over the coming year, driven by supportive government policies. He acknowledged the sector's current status as a "weak point" for steel demand but remains hopeful about recent measures introduced by the Chinese government.

 

"The government has enacted policies recently that are meant to support the property sector… We expect that we could see a turnaround in the property sector in the year ahead," Henry stated.

 

China has implemented a series of initiatives aimed at stabilizing its property market, which historically contributed approximately 25% to 30% of the nation's GDP. Notably, Beijing eliminated the nationwide minimum mortgage interest rate and lowered the minimum down payment for first-time buyers from 20% to 15%.

 

Additionally, in May, the central bank allocated 300 billion yuan ($42.25 billion) to financial institutions to assist local state-owned enterprises in purchasing unsold, completed apartments.

 

On Saturday, Housing Minister Ni Hong remarked that there remains "great potential and room" for growth within China's property sector as urbanization continues and the demand for quality housing rises.

 

BHP recently reported a 2% increase in its annual underlying profits, attributing this growth to "solid operational performance and higher commodity prices in key commodities."

Viewed By: 76297346