From CNBC: 2024-04-09 20:05:58

In China, economic activity may require home prices to rise, according to Nomura Research Institute’s Richard Koo. New loan appetite is low, with January seeing steeper home price drops than February. Analysts warn of a possible “balance sheet recession.” Real estate remains in an “adjustment” period as officials emphasize new growth drivers.

China’s economy grew 5.2% in 2023, aiming for 5% growth in 2024. Analysts doubt achievability without further stimulus. Beijing’s hesitance stems from past stimulus errors, like a 4 trillion yuan package post-global financial crisis. Keeping up stimulus led to growth overheating and speculation, leading to current reluctance to take similar measures.

Read more: China needs a narrative that house prices are going to rise