From CNBC: 2024-07-11 22:14:18

The Third Plenum of the Chinese Communist Party is scheduled for July 15-18 and is expected to address issues such as high local government debt and advanced manufacturing. The meeting typically happens once every five years and is crucial for economic policy discussions, with a focus on fiscal reform and structural policies.

The real estate sector’s challenges in China are significant, but the upcoming Third Plenum is anticipated to concentrate on other areas like local government debt levels and advanced manufacturing. The meeting, which takes place every five years, is a key policy event for the Communist Party to discuss economic reforms and fiscal policies.

The Third Plenum has historically centered on economic policy and signaled pivotal changes for China. Analysts are keeping a close watch on financial reform discussions at the upcoming meeting, as well as potential policies concerning banking, local government finances, and taxes.

Local government finances in China are intertwined with the real estate market’s struggles. Sustainable revenue sources are essential for local governments, and new taxes like consumption tax could be part of the solution. Amidst economic challenges, concerns about inequality and fairness are growing among the Chinese populace.

Read more: China to hold Third Plenum. Why real estate isn’t likely the main focus