China Holds Off on Major Stimulus as It Signals Property Easing
- Politburo promises ‘counter-cyclical’ policy in July meeting
- Readout doesn’t include big fiscal, monetary policy loosening
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China’s top leaders signaled more support for the troubled real estate sector alongside pledges to boost consumption and resolve local government debt, though fell short of announcing large-scale stimulus to support the slowing economic recovery.
The ruling Communist Party’s 24-member Politburo — its top decision-making body led by President Xi Jinping — promised “counter-cyclical” policy, according to a readout published Monday by the official Xinhua News Agency. That suggested more economic support as well as an “adjustment” of restrictions in the property sector. Real estate has been slumping for two years, partly due to a government clampdown on corporate and household leverage.