The second component is purchases of assets such as exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs), which are conducted with a view to exerting positive effects on economic activity and prices through lowering risk premiums such as on stocks. The third component is the commitment regarding the future conduct of monetary policy.
Concerned about the hike in real estate prices, the Chinese government this April introduced measures, including a higher down-payment ratio for housing purchases, to restrain the increase in real estate transactions. These measures are expected to place added downward pressure on economic activity to a certain extent by slowing the pace of growth in fixed asset investments.