© Reuters. FILE PHOTO: A crane is pictured during the construction of a building, in Shanghai, China July 20, 2022. REUTERS/Aly Song/File Photo
SHANGHAI (Reuters) – A top advisor to the People’s Bank of China on Saturday called for strengthening of real estate policy in light of sluggish economic growth over the past several years as China has pursued its zero-COVID policy.
Wang Yiming, a member of the Monetary Policy Committee of the People’s Bank of China, told attendees at the China Wealth Management 50 Forum in Beijing a decline of real estate sales in November showed that existing policies must be strengthened and that new ones were needed to support the sector.
He did not detail the required policy changes.
China has in recent weeks ramped up support for the industry to relieve a liquidity squeeze that has stifled companies in the sector, including lifting a ban on fundraising via equity offerings for listed property firms.
The property sector has also got a slight boost from China’s abandonment of the zero-COVID policy. But sluggish demand is still a major constraint on full recovery.