A pedestrian crosses the road in front of a residential building in Beijing, China.
Shen Qilai | Bloomberg | Getty Images
The Minister of Housing and Urban-Rural Development will hold a press conference to study and promote the stable and healthy development of the real estate market State Council Information Office.
The briefing is expected to begin at 10 a.m. local time, with China’s Minister of Housing and Urban-Rural Development Ni Hong delivering a speech along with officials from the central bank, the Ministry of Finance and the National Monetary Authority.
The event was the latest in a series of high-level economic policy briefings that began in late September. Investors view the latest stimulus package as a sign that Beijing is finally stepping in to stimulate slowing economic growth and a struggling real estate sector.
Over the weekend, officials Ministry of Finance of China It was announced that local governments would be allowed to issue more special bonds for land purchases and that affordable housing subsidies would be allowed to be used on existing housing stock, not just new construction.
China real estate stocks surge on Monday After the news came out, the Hang Seng Mainland Property Index rose more than 2%. The real estate sector was also the sector with the largest increase in the CSI 300 Index, rising nearly 5%. The HSMPI is down more than 80% from its peak in January 2020.
China’s stock market has been volatile overall this week as investors are divided over whether the government will introduce the stimulus needed to boost the economy. Markets were rising again ahead of Thursday’s press conference, signaling some hope that China will soon unveil some concrete stimulus policies.
But some analysts aren’t so sure. Bruce Peng, chief economist and head of research for Greater China at JLL, said he expected no policy surprises at Thursday’s briefing.
“Policymakers have taken a more pragmatic stance on the real estate sector, which is expected to be neither a driver nor a drag on economic growth,” but a “stabilizer” in the future, he said.
late September, Pan Gongsheng, Governor of the People’s Bank of China Announced a 50 basis point cut in the amount of cash banks have on hand, known as the deposit reserve ratio or RRR. He also lowered the national minimum down payment on second home loans from 25% to 15%.
A few days later, officials at a high-level meeting Hosted by Chinese President Xi JinpingCommitment to “stop the decline of the real estate market and promote the stable recovery of the real estate market.”
—CNBC’s Evelyn Cheng contributed to this article.
This is a development story. Please check back later for updates.
