China Vows to Strengthen Efforts to Stabilise Housing, Equity Markets
Real Estate

China Vows to Strengthen Efforts to Stabilise Housing, Equity Markets

China's regulators have pledged to intensify efforts to stabilise the housing and equity markets, as well as implement more effective fiscal policies, following a meeting of top leaders who called for greater stimulus.

The government aims to promote the recovery of the property market through measures such as increasing demand and controlling the supply of land for new development. Dong Jianguo, a vice minister at the housing ministry, made this statement during a conference on Saturday, as reported by China News Service.

The China Securities Regulatory Commission announced that it will enhance market monitoring for futures and spot trading and strengthen supervision of margin trading, derivatives, and quantitative trading, according to a statement on its website.

The Ministry of Finance stated that it will introduce more effective and sustained fiscal policies next year and improve macroeconomic regulations. The government will also increase the issuance and usage of local government special bonds, expanding their investment areas, as per the statement. These comments followed a two-day Central Economic Work Conference in Beijing, where officials, led by President Xi Jinping, vowed to raise the fiscal deficit target next year. For only the second time in at least a decade, officials made "lifting consumption vigorously" and stimulating overall domestic demand their top priority.

Although China's struggling economy has shown modest recovery in recent weeks, supported by more government initiatives with signs of improvement in consumption and factory activity, overall confidence remains fragile. This is because policies have not been robust enough to lift the economy out of deflation. In a sign of the challenges facing policymakers, China's credit expansion unexpectedly slowed in November. According to figures released, loans extended to the real economy, excluding those to financial institutions, fell to the lowest for November since 2009. This decline, coupled with elevated government bond issuance, has slowed overall credit growth.

Further easing is expected, with China planning to cut interest rates and the reserve requirement ratio in a timely manner next year, as reported by the 21st Century Business Herald on Saturday, citing Wang Xin, director of the research bureau under the People's Bank of China. Wang also mentioned that the central bank would increase the intensity of monetary and credit supply. He stated that financing conditions for the real economy would be further relaxed. These remarks followed a pledge by the Politburo to embrace a "moderately loose" monetary policy in 2025.

The anticipation of further easing has sparked a rush of funds into government bonds. On Friday, the yield on China's 10-year bonds dropped to a record low of 1.77 per cent, with longer-tenor yields also declining. In contrast, the CSI 300 Index of stocks fell by 2.4 per cent, marking its worst drop in three weeks.

The central bank will also focus on improving the management of exchange rate expectations and guarding against potential shocks next year, according to a senior official.

China's regulators have pledged to intensify efforts to stabilise the housing and equity markets, as well as implement more effective fiscal policies, following a meeting of top leaders who called for greater stimulus. The government aims to promote the recovery of the property market through measures such as increasing demand and controlling the supply of land for new development. Dong Jianguo, a vice minister at the housing ministry, made this statement during a conference on Saturday, as reported by China News Service. The China Securities Regulatory Commission announced that it will enhance market monitoring for futures and spot trading and strengthen supervision of margin trading, derivatives, and quantitative trading, according to a statement on its website. The Ministry of Finance stated that it will introduce more effective and sustained fiscal policies next year and improve macroeconomic regulations. The government will also increase the issuance and usage of local government special bonds, expanding their investment areas, as per the statement. These comments followed a two-day Central Economic Work Conference in Beijing, where officials, led by President Xi Jinping, vowed to raise the fiscal deficit target next year. For only the second time in at least a decade, officials made lifting consumption vigorously and stimulating overall domestic demand their top priority. Although China's struggling economy has shown modest recovery in recent weeks, supported by more government initiatives with signs of improvement in consumption and factory activity, overall confidence remains fragile. This is because policies have not been robust enough to lift the economy out of deflation. In a sign of the challenges facing policymakers, China's credit expansion unexpectedly slowed in November. According to figures released, loans extended to the real economy, excluding those to financial institutions, fell to the lowest for November since 2009. This decline, coupled with elevated government bond issuance, has slowed overall credit growth. Further easing is expected, with China planning to cut interest rates and the reserve requirement ratio in a timely manner next year, as reported by the 21st Century Business Herald on Saturday, citing Wang Xin, director of the research bureau under the People's Bank of China. Wang also mentioned that the central bank would increase the intensity of monetary and credit supply. He stated that financing conditions for the real economy would be further relaxed. These remarks followed a pledge by the Politburo to embrace a moderately loose monetary policy in 2025. The anticipation of further easing has sparked a rush of funds into government bonds. On Friday, the yield on China's 10-year bonds dropped to a record low of 1.77 per cent, with longer-tenor yields also declining. In contrast, the CSI 300 Index of stocks fell by 2.4 per cent, marking its worst drop in three weeks. The central bank will also focus on improving the management of exchange rate expectations and guarding against potential shocks next year, according to a senior official.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?