China has changed its tone on the country's struggling real estate sector, signaling that more policy support may be on the way.
That kind of decline isn't in line with China's growth targets, said Zong Liang, chief researcher at the Bank of China.
He said the Politburo meeting's removal of a phrase about house speculation means policymakers have achieved a certain level of success — indicating they can move on. That could mean some price volatility might be allowed in segments of the real estate market, but not for properties meant to ensure basic living needs, he added.Developers' difficulties
So far, the biggest real estate policy change has been this month's extension of measures to support developers, which were first revealed in November.raising funds from the equity and bond markets," said Tommy Wu, senior China economist, Commerzbank. "Confidence of potential homebuyers and housing sales could improve in a sustainable manner only when housing completion is on a firm footing," Wu said. "This in turn would support developers' funding and their debt repayment more generally and build a virtuous cycle."Moody's expects far fewer Chinese developers to default this year since many were able to push back maturities to late next year.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China Insight: Shanghai, China’s Window to the World, Launches Shanghai GalaThe event, to be held this fall, will feature a red-carpet gala as well as a fashion exhibition of leading designers from around the world.
Read more »
11 killed as roof collapses at middle school gym in China's far northeast, officials sayEleven people were killed in the roof collapse of a school gymnasium in China’s far northeast, authorities say. Construction work was the likely cause, with materials stored on the roof absorbing rainwater, according to China's Xinhua News Agency.
Read more »
China Box Office: ‘Barbie’ Opens in Fifth Place With $8MPositive word of mouth was starting to boost Barbie on Monday afternoon, however, as it climbed into third place for the day.
Read more »
Cathie Woods ARKK ETF has zero China exposure following tech crackdownCathie Wood's $9 billion flagship Ark fund cut all exposure to China after Beijing started cracking down on Jack Ma
Read more »
Several young girls among 11 dead in China gymnasium roof collapseA female volleyball team was training in the gymnasium when the incident happened China's Qiqihar city, authorities said.
Read more »
Analysis: China's pitch to foreign investors falls flat as incentives dwindleChina is struggling to revive foreign investment in its financially battered cities and provinces as foreign firms remain wary of political risks and new incentives fall far short of sweeteners once used to attract overseas money.
Read more »