China ‘stepping in’ as property concerns mount, but no ‘treading the old path’

Premier Li Qiang’s remarks on further shoring up the property sector and escalating policy support are said to be indicative of Beijing’s lingering concerns over the sector – once an economic pillar for China – that remains a drag on growth and consumption, as seen in the latest statistics.

Analysts say that while there is no quick fix to the woes, Beijing has grown more wary of the impact on overall sentiment and domestic demand, as the economy grapples with external turmoil.

A State Council meeting convened by Li on Friday set a more definitive tone on supporting China’s property market, which came ahead of Monday’s release of key economic data for the January-May period.

The meeting underscored the need to “further optimise existing policies and enhance systematic synergy of implementation” to stabilise expectations, stimulate demand and mitigate risks, the state’s Xinhua reported.

Specifically, there will be a thorough stocktake of ongoing projects and land supplies, and urban-renewal projects will receive more land supply and financing aid.

Once again, the meeting stated that the ultimate goal is to “halt the decline and stabilise the sector”.