Viewpoints

China Steps Up Property Support: Is This the Turning Point for the Struggling Sector?

China’s introduction of comprehensive support for its real estate sector could provide some cyclical relief amidst longer-term headwinds, but new COVID-19 waves cloud the outlook.

A slew of recent measures issued by China’s central government to rescue its property sector have, in PIMCO’s view, limited the downside risks to the country’s cyclical growth outlook.

In the latest boost for the industry, on 28 November, the China Securities Regulatory Commission (CSRC) opened up equity financing options for Chinese developers, including lifting a years-long ban on private share sales and allowing mergers and acquisitions.

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The Author

Carol Liao

China Economist

Frank Chen

Credit Research Analyst

Stephen Chang

Portfolio Manager, Asia

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