The\u00a0Communist Party’s\u00a0official\u00a0journal Qiushi,\u00a0which means “seeking truth,”\u00a0kicked off 2026 with a Jan. 1 article calling for “more powerful and precise measures” to stabilize property market expectations. <\/p>\n
Since then, the Hang Seng China A Properties Index<\/a>, which includes developers Vanke<\/a> and Seazen<\/a>, has climbed more than 6% to start the year, reflecting growing investor optimism.<\/p>\n The Qiushi commentary was notable for its scope, said Ting Lu, chief China economist at Nomura.<\/p>\n “This is the most comprehensive assessment of China’s property markets published in\u00a0Qiushi\u00a0since the sector’s collapse in mid-2021,” Ting said in a report earlier this week. “Its significance should not be overlooked.”<\/p>\n Public Chinese official commentary, such as Qiushi articles, is closely watched because it often signals internal policy debates and potential shifts in official thinking before decisions are announced.<\/p>\n The article appeared ahead of China’s annual parliamentary meeting in March, when\u00a0top leaders gather to set policy goals for the year ahead. This year, the meeting will also release full details on its next five-year development plan.<\/p>\n “Beijing cannot afford to let its property sector slide indefinitely, and much more decisive action is needed to truly stabilize the property sector and the overall economy,” Lu said.<\/p>\n “Given\u00a0rising trade tensions\u00a0and the likely unsustainable strength in the export sector, Beijing might eventually be compelled to ramp up its policy measures significantly.”<\/p>\n China’s property downturn has dragged on<\/a> despite a clear call from top leaders in Sept. 2024 to halt the sector’s decline.<\/a> New home sales have nearly halved since Beijing started cracking down<\/a> on developers’ heavy reliance on debt for growth, with floor space sold in 2025 falling to levels seen back in 2009<\/a>, according to a report this week by the China Real Estate Information Corp. <\/p>\n Measures introduced so far have focused on easing some restrictions on buyers, originally intended to stem speculation.<\/p>\n The Qiushi article called for property policies to be implemented “in one go,” rather than a “piecemeal approach.” <\/p>\n Cliff Zhao, chief economist at China Construction Bank International, agreed. Policy does need to be more assertive, while targeted support for larger cities could go a long way without too much cost, he said.<\/p>\n He added that details are likely to only emerge at the parliamentary meeting in March or at later high-level meetings focused on urban development.<\/p>\n Rejecting a current view on real estate<\/p>\n While official language has often framed the real estate slump as merely a “period of adjustment,” the Qiushi article made a direct call for urgency, saying policymakers must “shorten the adjustment period as much as possible,” according to a CNBC translation of the Chinese commentary.<\/p>\n In addition, Qiushi argued against a view in Beijing that real estate is no longer that important<\/a> to China’s economy, and warned that policymakers need to prepare for possible bankruptcies of real estate companies still struggling with high debt levels.<\/p>\n Financial stress across the sector remains evident. <\/p>\n Vanke<\/a>, once one of China’s largest real estate companies, has struggled to meet its debt obligations, prompting S&P Global Ratings\u00a0to downgrade the developer’s debt<\/a>. In recent weeks, Vanke narrowly avoided default on a 2 billion yuan ($283 million) onshore bond initially due Dec. 15, 2025, before getting an extension.<\/p>\n In a broader sign of strain, Chinese real estate developers’ outstanding loan balance fell in the third quarter from a year ago for the first time in more than a decade, according to official data accessed via Wind Information.<\/p>\n Based on the Qiushi article, the government is expected to implement more innovative and targeted measures, Michelle Kwok, HSBC’s head of Asia real estate and Hong Kong equity research, wrote in a report Thursday.<\/p>\n “The most impactful policies will likely be those that meaningfully reduce the financial burden on home buyers,” the report said. “In our view, more focus on acquiring excess inventory will be a key step to resolving bottlenecks.”<\/p>\n![\"2026](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/01\/108249765-17678537521767853746-43388257528-1080pnbcnews.jpg\")
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