Glonghui, May 20 | Citibank released a research report saying that the People's Bank of China and the State Financial Supervisory and Administration recently announced a package of real estate easing policies, including lowering the minimum down payment limit, abolishing the lower mortgage interest rate limit, and lowering the interest rate on housing provident fund loans. The People's Bank of China will also provide affordable housing loans, which are expected to promote 500 billion yuan in loans to support local governments in purchasing residential inventory. The bank expects that the measures will improve the relationship between supply and demand in the real estate market and restore market confidence. It is believed that the policy shows that the Chinese supervisory authorities are continuously strengthening their efforts and determination to curb systemic risks. It is hoped that the authorities may introduce further stimulus measures when property prices are adjusted. As systemic risks in the industry have been mitigated, Citibank expects domestic banks with high developer exposure to benefit. Among them, it favors CCB and the Postbank, which give them a “buy” rating. In the real estate sector, Citi is optimistic about developers with good cash flow performance in the second quarter, preferring China Resources Land, Shell, Greentown Management, and China's overseas development.