China will win ‘tough battle’ to preserve property sector: housing minister
China’s housing ministry unveiled its plan to support the country’s property sector, with an expansion of funding to 4 trillion yuan
While China has declared its property sector has “bottomed out” and pledged more support for the beleaguered industry – including an expansion of funding to 4 trillion yuan (US$562.18 billion) – sentiment remains guarded despite recent glimmers of hope.
“The market has bottomed out after three years of adjustment and the government will eventually win the tough battle to revive the sector,” Ni said, vowing a joint effort to implement a number of supportive policies.
The briefing was also attended by officials from the People’s Bank of China, Ministry of Finance and the National Financial Regulatory Administration.
The minister also said the country’s urban redevelopment would cover 1 million homes, with room for more if circumstances demand. Residents in affected areas would be offered monetary compensation to cover their resettlement.
[These measures] could help ease the financial distress of developers, but may not be enough to [sustain] stabilisation
“The policy support announced remains incremental. The market has stabilised for now, but the effect may fade later, as seen in past experience. The market may have to wait longer for decisive policy action,” said Larry Hu, chief China economist at Macquarie Capital.