China’s top leaders call for halting real estate decline

From CNBC: 2024-09-26 05:41:54

Builders in Yuexi County, Anqing city, Anhui province increased construction on Sept 25. Top leaders in China aim to stop the property slump, calling for a stable recovery and addressing concerns. President Xi Jinping led the meeting, signaling support for fiscal and monetary policies to boost the economy.

Stocks in China and Hong Kong surged after the announcement, with property stocks rising by nearly 12%. Real estate once made up a significant portion of China’s economy, but has declined due to debt crackdowns. Data shows a slight moderation in the decline of new home sales and prices.

China looks to limit housing supply growth, increase loans for select projects, and lower existing mortgage interest rates. The People’s Bank of China aims to reduce mortgage payment burden by 150 billion yuan annually. Analysts caution that while the economy may be improving, fiscal support remains necessary.

China aims to achieve full-year economic targets but dials back aggressive growth tactics from previous meetings. Analysts adjust growth forecasts, expecting a growth rate below 5%. Policymakers seek balance between short-term growth and addressing structural issues. An emphasis on stabilizing growth highlights concerns about the current economic trend.

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