+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code