China to outline measures to strengthen property sector  

By AJP Posted : October 17, 2024, 09:35 Updated : October 17, 2024, 09:36
A light show is seen in Chengdu the capital of Sichuan Province in southwest China on Oct 1 2024 Xinhua-Yonhap
A light show is seen in Chengdu, the capital of Sichuan Province in southwest China on Oct. 1, 2024. Xinhua-Yonhap
SEOUL, October 17 (AJP) - China is set to hold a press conference on Thursday to present new efforts aimed at supporting the property sector. Senior officials from multiple departments, including the minister of housing and urban-rural development, will introduce measures designed to promote a stable and healthy real estate market.  

These latest moves to stabilize the property market follow a series of monetary and fiscal policies recently introduced, signaling that the Chinese government has ample tools to sustain economic growth, analysts said.  

After China announced comprehensive policy support, several foreign institutions raised their GDP forecasts for the country in 2024.  

Housing Minister Ni Hong, along with officials from the Ministry of Finance, Ministry of Natural Resources, the People's Bank of China, and the National Financial Regulatory Administration, will take part in the Thursday briefing, according to the State Council Information Office.  

On Wednesday, property-related stocks in China surged as speculation grew about further policy support for the housing sector to be announced at the briefing. More than 10 stocks hit their daily price limit.  

The upcoming press conference follows comments from Finance Minister Lan Fo'an at a Saturday event, where he outlined a series of fiscal measures to help stabilize the property market.  

The minister said these measures would include using fiscal tools like local government special-purpose bonds, special funds, and tax policies to support the property sector.  

Local governments will also be encouraged to use special-purpose bonds to reclaim idle land or expand land reserves if needed, said Vice Finance Minister Liao Min at the same event, according to Xinhua.  

These bonds could also be used to purchase existing housing for affordable housing projects, Liao added.  

Together with recent policies like interest rate cuts, lower reserve requirement ratios, unified down payment requirements for housing loans, and the easing of purchase restrictions in major cities, these measures will help the real estate market reduce inventory and recover quickly, according to Chang Haizhong, executive director at rating agency Fitch Bohua.  

The fiscal package announced on Saturday also includes a significant increase in the debt ceiling, allowing for a lump-sum replacement of local government hidden debts, which should help mitigate debt risks.  

These policy initiatives show that China has a broad and effective set of tools to ensure stable growth, analysts said.  

Wu Chaoming, deputy head of the Chasing Research Institute, told the Global Times that raising the debt ceiling leaves room for additional policies, further boosting investor confidence.  

"Fiscal spending is likely to accelerate significantly in the fourth quarter. Meanwhile, supported by incremental policy measures, China's consumption, infrastructure investment, and prices are expected to recover in the fourth quarter," Wu said.
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