China property players keen to help spur growth

The Central Economic Work Conference noted the significance of achieving stable growth in real estate, unleashing housing consumption potential, preventing and defusing major economic and financial risks, as well as making a smooth transition toward a new development model. — Bloomberg

SHANGHAI: By recognising the importance of the real estate industry to the larger economy, the annual Central Economic Work Conference, which concluded last Friday, has underlined how the industry’s stable development would contribute to macroeconomic stability in the coming year, officials and experts say.

The tone-setting conference noted the significance of achieving stable growth in real estate, unleashing housing consumption potential, preventing and defusing major economic and financial risks, as well as making a smooth transition toward a new development model.

In order to ensure stable property market development, reasonable financing demand should be met, industry mergers and acquisitions promoted, and regional or systemic risks prevented, noted the conference as Chinese leaders decided on priorities for economic work in 2023.

Efforts to stabilise the property industry have started, especially in recent months as the nation’s financial regulators launched a wide range of policies one after another, said Hui Jianqiang, head of research at Beijing Zhongfang-Yanxie Technology Service Ltd.

This covers credit, bonds, pre-sale supervision funds, mergers and acquisitions of real estate developers, among others, to ensure the property market’s stable and healthy development, he said.

Hui said he expects further policy fine-tuning as the central authorities have reaffirmed the importance of the real estate industry.

Real estate is one of the nation’s pillar industries, which accounts for about 7% of the nation’s gross domestic product, and takes up about 60% of urban household’s assets.

This industry has a major influence on financial stability, Xinhua News Agency reported, citing an unidentified official from the Central Committee for Financial and Economic Affairs. — China Daily/ANN