China's leadership promises support for ailing real estate sector
China's political leadership has promised state support for the country's struggling real estate sector. At a meeting, the so-called Central Economic Work Conference agreed to "mitigate risks in the real estate sector" and "meet the reasonable financing needs of real estate companies", state broadcaster CCTV reported. The committee brings together the country's most important decision-makers, including President Xi Jinping.
The state news agency Xinhua had previously quoted from a statement by the Economic Work Conference: "China still has to overcome some difficulties and challenges in order to further boost the economy," the leaders said.
President Xi had already declared last week that he saw the country in a "decisive phase". "Efforts" are needed to increase domestic demand and create a favorable environment for both consumption and investment.
According to Xinhua, the Economic Work Conference has now determined that "China's economy has recovered". The "fundamental trend of economic recovery" and the "long-term positive outlook" have not changed.
The recovery of the Chinese economy following the end of the strict coronavirus restrictions has so far been sluggish. Last year, the economy only grew by a weak three percent. This year, the leadership is aiming for around five percent - but this target is likely to be difficult to achieve.
In addition, the country's huge real estate sector is in crisis. The sector is regarded as the country's traditional growth engine, but many companies are hopelessly in debt. The country's largest property developers are hundreds of billions of dollars in the red. The problems have already led to numerous project abandonments, which has affected the confidence of buyers and driven real estate prices into the basement. The crisis is now threatening to spread to other sectors.
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Source: www.ntv.de
