(Bloomberg) — China will refine real estate policies to provide stronger support for the ailing sector, as the property crisis drags into a fourth year.
The government will treat real estate companies equally regardless of their ownership, according to proposals outlined in a work report to the National People’s Congress on Tuesday.
It also pledged to “move faster to foster a new development model for real estate,” including by building government-subsidized housing. It will scale up such supply in line with President Xi Jinping’s mantra of “common prosperity” to narrow the wealth gap.
Developer shares fell as the measures did little to convince investors that they will end the property slump, which is denting growth in the world’s second-largest economy. The crisis has spread to the nation’s biggest builders, with China Vanke Co. the latest to face growing investor concern over its debts.
Read more: China’s Property Debt Woes Deepen as Vanke Under Closer Scrutiny
The work report omitted the slogan “housing is for living in, not speculation” for the first time since 2019, as top leaders try to stabilize an industry that once drove about a quarter of economic output. The phrase has consistently been used by officials since 2016, and became an important way for Beijing to signal its intention to cool an overheating market.
The government also pledged to boost financing for private businesses. It is planning to increase loans and expand the scale of bond issuance for such companies.
A Bloomberg Intelligence gauge of Chinese developer shares fell as much as 2.9% on Tuesday. It has dropped 57% in the past year.
Beijing plans to improve oversight systems for the “unified management” of local government debt, the report said. The property crisis has put a strain on local authorities, which rely on land sales for much
The post China to Refine Real Estate Policies to Support Ailing Sector first appeared on Insie Mesenza.