China set to unveil new measures to boost property sector
Real Estate

China set to unveil new measures to boost property sector

China has pledged new measures to support its property sector and suggested that the government may increase borrowing to stabilize the economy, as authorities work to mitigate the country's economic slowdown.

At a briefing on Saturday, Finance Minister Lan Fo'an and his deputies announced that local governments would be allowed to use special bonds to purchase unsold homes, though they did not specify the amount. Lan hinted at the possibility of issuing more sovereign bonds and committed to easing the debt burden of local governments. This raised the prospect of a potential revision to the national budget in the coming weeks.

Lan indicated that the central government has significant capacity to borrow and expand the deficit but did not provide a specific timeline for these actions.

Although Lan refrained from detailing the cost of additional stimulus—potentially disappointing some investors—the measures were in line with economists' expectations, focusing on resolving the property sector crisis and addressing local government debt issues. Officials also revealed that China plans to issue special sovereign bonds to bolster the capital of its largest state-owned banks, a move expected to increase lending and support economic growth.

During a visit to several cities in northwestern China, Vice Premier He Lifeng described the property market as a key indicator of the country's economic health, according to the official Xinhua News Agency. He urged officials to recognize the political importance of ensuring the delivery of housing projects and stabilizing the market.

Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc., noted that the fiscal measures to address local debt risks, recapitalize state banks, and support the property sector were exactly what the market and investors had been anticipating.

China has pledged new measures to support its property sector and suggested that the government may increase borrowing to stabilize the economy, as authorities work to mitigate the country's economic slowdown. At a briefing on Saturday, Finance Minister Lan Fo'an and his deputies announced that local governments would be allowed to use special bonds to purchase unsold homes, though they did not specify the amount. Lan hinted at the possibility of issuing more sovereign bonds and committed to easing the debt burden of local governments. This raised the prospect of a potential revision to the national budget in the coming weeks. Lan indicated that the central government has significant capacity to borrow and expand the deficit but did not provide a specific timeline for these actions. Although Lan refrained from detailing the cost of additional stimulus—potentially disappointing some investors—the measures were in line with economists' expectations, focusing on resolving the property sector crisis and addressing local government debt issues. Officials also revealed that China plans to issue special sovereign bonds to bolster the capital of its largest state-owned banks, a move expected to increase lending and support economic growth. During a visit to several cities in northwestern China, Vice Premier He Lifeng described the property market as a key indicator of the country's economic health, according to the official Xinhua News Agency. He urged officials to recognize the political importance of ensuring the delivery of housing projects and stabilizing the market. Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc., noted that the fiscal measures to address local debt risks, recapitalize state banks, and support the property sector were exactly what the market and investors had been anticipating.

Next Story
Infrastructure Energy

Statiq Teams Up with Vertelo to Boost Charging Infrastructure

EV charging network operator Statiq has formed a partnership with e-mobility solutions provider Vertelo to enhance the country's charging infrastructure. As part of the collaboration, Statiq will provide turnkey solutions, which include supplying EV chargers and handling the complete execution of engineering, procurement, and construction (EPC) services for installing and commissioning the chargers. The two companies will also co-develop EV charging sites, further reinforcing India's EV infrastructure. Akshit Bansal, the founder and CEO of Statiq, mentioned that aligning with Vertelo would al..

Next Story
Infrastructure Energy

Gentari to Provide 650 MW of Clean Energy to AMG Ammonia

Gentari, the clean energy arm of Malaysia's state-owned Petronas Group, has entered into an agreement to provide 650 MW of clean energy to power AMG Ammonia's upcoming green ammonia facilities. The deal, a firm and binding Power Purchase Agreement (PPA), was signed by Gentari Renewables India Castor One, a subsidiary of Gentari, and AM Green Ammonia India, as stated by both companies. According to the agreement, Gentari will supply 650 MW of round-the-clock (RTC), carbon-free energy to AMG Ammonia's green ammonia facilities through a long-term PPA. Gentari will also establish approximately 2,..

Next Story
Infrastructure Energy

India to Mandate Local Solar Cells in Clean Energy by June 2026

Starting from June 2026, Indian clean energy companies will be required to use solar photovoltaic (PV) modules made from locally produced cells by government-approved manufacturers, as part of efforts to reduce imports from China, the leading supplier. India already mandates the use of domestically made PV modules in government projects, sourced from a list of approved manufacturers, and this policy has now been extended to include solar cells as well. The government aims to increase its non-fossil fuel energy capacity to 500 GW by 2030, up from the current 156 GW. At present, India's solar..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000