Morgan Stanley's Xing Ziqiang: Suggest trying out a 100 basis point mortgage interest rate deduction to narrow the gap with rental yields.

Morgan Stanley's chief economist in China, Xing Ziqiang, believes that there are three pathways for alleviating the real estate crisis at the policy level: reducing inventory, protecting the main body, and providing mortgage subsidies. He suggests that, relatively speaking, using fiscal funds to provide mortgage subsidies can narrow the gap between mortgage rates and rental yields, thereby changing the expectations of the people regarding home purchases.