The 24-member Politburo, which is the top decision-making mechanism in China, gave the message that appropriate policies will be created to alleviate the crisis in the real estate sector.
While expectations for the government to take strong steps due to the crisis in the housing sector in the country, China’s most important decision-making body, the Politburo, made a commitment to implement new policies in the real estate sector.
According to the Xinhua news agency, the statement said the economy is facing new challenges, domestic demand is insufficient and the economic recovery is “challenging”.
In this context, it was stated that macro regulations will be put into effect, the prudent monetary policy will continue and the necessary policies will be implemented in the real estate sector at the appropriate time. It was stated that the issuance of local government special bonds will be accelerated. “We will continue to liberalize markets and improve the development environment for private sector companies,” the statement said.
Investors focused on new steps to be taken by Chinese leaders due to the recent slowdown in the Chinese economy. While the latest data from consumption to trade deteriorated in the country, the deterioration continued in the real estate sector, causing alarm bells to ring in the economy.
Some economists are worried that the Beijing government will not be able to meet its 2023 growth target of around 5 percent.