China’s state media urges patience as market clamors for real estate stimulus – Reuters

BEIJING, Jun 7 (Reuters) – China’s bailout measures for its beleaguered real estate market will take “some time” to take effect, a state newspaper warned on Wednesday, as investors bet on short-term stimulus to revive the sector .

The comments from Economic Daily, which is backed by the cabinet, came as investors in real estate stocks were torn between hope that Beijing will take more supportive measures and disappointment that nothing has been revealed since last week.

“We need to show more patience and confidence in the stabilization and recovery of the real estate market and in its continued stable and healthy development,” the newspaper said.

Supportive policies, from easing curbs on home purchases to easing financial pressures and increasing financial support, are still being rolled out, it added, but warned: “The policies will take time to take effect.”

Last year’s slump in the industry, until then a pillar of the world’s second-largest economy, left developers unable to pay their debts or bonds and suspended construction on pre-sold housing projects.

“At this point, every effort should be made to ensure that pre-sold housing projects are delivered on time,” the paper said, helping to restore industry confidence.

Local governments have taken hundreds of measures to stimulate demand since last year. But the market sentiment, initially buoyed by the dropping of the COVID-19 hard bands in December, is proving to be short-lived.

The real estate market showed more clear signs of recovery in the first quarter, but the trend did not continue in April and May, the paper said.

“Market focus has quickly shifted from whether to boost to how to boost amid the ongoing data weakness,” Citi said in a research note Tuesday.

“The next two months will be a critical period for action.”

Reporting by Liangping Gao and Ryan Woo; Edited by Clarence Fernandez

Our Standards: The Thomson Reuters Principles of Trust.

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