China’s leaders want this chart of property prices to turn around
A readout of a meeting of China’s leaders confirmed that the country’s highest ranking officials are intent on arresting the property decline that’s swept the nation in recent years.
Per CNBC, President Xi Jinping led the meeting, calling for a raft of fiscal and monetary policies that could kickstart the country’s slumping property sector — often the most important wealth-building instrument for consumers.
China’s real estate boom powered much of the rise of the country’s middle class. But mounting debt amongst developers, as well as in the burgeoning middle class that aspired to buy the millions of homes being built, has spoiled the party. Per the most recent national data, the price of new homes has fallen 5.3% in the last year.
After the news, investors bid up Chinese property stocks, with the Hang Seng Property Development and Management Index up nearly 12%.
China’s real estate boom powered much of the rise of the country’s middle class. But mounting debt amongst developers, as well as in the burgeoning middle class that aspired to buy the millions of homes being built, has spoiled the party. Per the most recent national data, the price of new homes has fallen 5.3% in the last year.
After the news, investors bid up Chinese property stocks, with the Hang Seng Property Development and Management Index up nearly 12%.
