BHP CEO anticipates a recovery in China's real estate market in the upcoming year.

• According to Mike Henry, BHP's CEO, the property sector in China is predicted to recover in the next year due to supportive government policies.
• Despite the country's property sector being a "weak point" for steel demand, Henry is optimistic about the Chinese government's recent measures.
• Henry stated that the government has recently implemented policies to support the property sector, and we anticipate a potential turnaround in the sector in the upcoming year.

Mike Henry, CEO, anticipates a revival of China's property market in the next year due to supportive government measures.

Despite the country's property sector being a "weak point" for steel demand, Henry is optimistic about the suite of measures the Chinese government has announced recently.

Henry stated that the government has recently implemented policies to support the property sector, and we anticipate a potential turnaround in the sector in the upcoming year.

Beijing has recently abolished the nationwide minimum mortgage interest rate and decreased the minimum down payment ratio for first-time buyers to 15%, from 20% previously, as part of measures aimed at stabilizing China's property sector, which was once responsible for approximately 25% to 30% of the country's GDP.

The central bank announced in May that it would allocate 300 billion yuan ($42.25 billion) to financial institutions to lend to local state-owned enterprises for purchasing unsold apartments that have already been completed.

China's housing minister Ni Hong stated that there is still significant potential for expansion in the property sector as the country continues to urbanize and the demand for quality housing continues to increase.

On Tuesday, BHP reported a 2% increase in its annual underlying profits, citing "strong operational performance and higher commodity prices in crucial commodities" as the reasons for the growth.

Despite the pressure from the property sector, China's steel demand remains volatile, as Henry observed.

The CEO stated that there are other sectors in China, including infrastructure, shipping, and automobiles, that are experiencing healthy growth in steel demand.

Australian shares of were 1.97% higher in Tuesday trading.