China should intervene more decisively to shore up property market: top party journal
Top Communist Party journal calls on officials to roll out a stronger policy package in one go, rather than following ‘piecemeal-style’ approach
China’s top party journal has called for a stronger package of policies implemented in one go – rather than through “piecemeal-style steps” – to stabilise the country’s struggling property sector, as the market remains vital to the domestic economy and consumer demand.
The article published by Qiushi, the Communist Party’s leading theoretical journal, said policymakers should take concrete steps to stabilise the property market, urging them to implement measures that are “aligned with market expectations and rolled out with sufficient force in one go, rather than through piecemeal-style steps”.
The commentary, which appeared on Friday, said China’s property market was undergoing a profound adjustment and that policymakers should be prepared for the possibility of individual developers facing bankruptcies or restructurings.
“China’s real estate sector is now at a critical turning point in its development,” the article said. “The transition between old and new growth models takes time, as does the shift in market behaviour.”
It called for stronger and more targeted macro controls to shorten the adjustment period, curb market volatility and guide the sector towards a stable, healthy and high-quality recovery.