Signal from China to support the real estate sector in crisis

Along with commitments to boost consumption and resolve local government debt, the Chinese government has signaled increased support for the troubled real estate sector. Chinese executives also pledged to “adjust and optimize policies in a timely manner” for the embattled real estate sector.

According to the news published by the Xinhua News Agency, the 24-member Politburo, the top decision-making body of the Communist Party of China, announced new policies. The policies mean more economic support, as well as an easing of restrictions on the real estate sector.

The Politburo meeting in July sets the tone for China’s economic policies for the second half of the year, with market watchers awaiting guidance on political support for faltering growth in the world’s second-largest economy.

SUPPORTED MARKETS

While China’s real estate sector has been a worrying factor for investors, real estate stocks and bonds fell to an eight-month low yesterday on concerns about cash shortages at the country’s two largest construction companies.

It rose as stock markets in China and Hong Kong rallied, boosting investor appetite as China pledged to step up steps to support its struggling economy.