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China likely to roll out de-stocking measures for property sector

Source: Time:2016-05-18 Author: Hits:8747

It is expected that during an upcoming key economic meeting Chineseofficials will introduce measures to cut housing inventories. De-stocking the property market will likely be discussed at the upcoming Central EconomicWorking Conference, which sets economic targets for the coming year, a source told ChinaBusiness News. The measures are not expected to boost the real estate market nor set quantitative de-stocking targets for specific regions. "The most important thing is to reactivate the property sector to help with its liquidity,"the source said. The housing market experienced a downturn in 2014 due to weak demand and a supplyglut. This continued into 2015, with both sales and prices falling, and investment slowing. According to data from the National Bureau of Statistics, the unsold home inventory hit arecord 686.3 million square meters by the end of October, up 17.8 percent from theprevious year. Officials have already showed resolve to address the country's housing woes. Destockingthe property market will be one of the government's main tasks, President Xi Jinpingtold ameeting of the Central Leading Group for Financial and Economic Affairs in November. Premier Li Keqiangalso told a cabinet meeting that the government should overhaulChina's household registration system to encourage more rural residents to settle in citiesand boost house sales. Besides existing stimulus measures such as cutting interest rates and easing depositrequirements, measures such as transforming commercial housing into affordable housingare also expected next year, the source said.