China’s Politburo signals easing property policies, debt risk plan
China's top leaders signaled they will ease property policies and adopt a plan to resolve local debt risks to help boost the economy as the recovery falters. The Communist Party's 24-member Politburo its top decision-making body led by President Xi Jinping vowed at a key economic policy meeting to optimize and adjust policies for the property sector.
They also called for actively expanding domestic demand and strengthening «counter-cyclical» adjustments, according to a readout of the gathering published Monday by the official Xinhua News Agency. «There were two key messages from the Politburo meeting: One, it brings domestic demand ahead of industrial policy, suggesting stronger counter cyclical measures,» said Xing Zhaopeng, senior China strategist at Australia & New Zealand Banking Group Ltd.
«Two, it also stressed a big plan for local government debt disposal.» Other highlights of the statement: Investors have been waiting for Chinese leaders to spell out their strategy for countering the nation's growth slowdown. Data has flashed warning signs on everything from consumption and trade to the worsening property slump, with some economists warning of risks to Beijing's 2023 gross domestic product expansion target of around 5%.
Economists have tipped real estate as the sector in greatest need of aid. Recent data suggests the property market which along with related industries accounts for about 20% of the economy is in decline again after a short-lived rebound.
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