China commits to stabilise housing, equity markets

China’s regulators have committed to strengthening measures to stabilise the housing and equity markets and implement more effective fiscal policies following a meeting of top leaders that emphasised the need for increased stimulus.

The government aims to boost the property market by increasing demand and regulating land supply for new developments, said Dong Jianguo, a vice minister at the housing ministry, on Sunday.

The China Securities Regulatory Commission will improve market monitoring for futures and spot trading and enhance supervision of margin trading, derivatives, and quantitative trading.

The ministry of finance plans to enhance fiscal policies and macroeconomic regulations next year. It will also boost the issuance and utilisation of local government special bonds, expanding investment areas.

Following a two-day meeting in Beijing, officials, led by President Xi Jinping, have pledged to increase the fiscal deficit target next year. This marks a significant shift as they prioritise boosting consumption and stimulating domestic demand.

China’s economy has shown some signs of improvement recently, with government support helping to boost consumption and factory activity. However, overall confidence remains weak due to ongoing deflationary pressures.

Attribution: Bloomberg

Subediting: Y.Yasser