China’s economic growth has suffered since mid-2021, when tightening controls on debt that Beijing fears could rise to a dangerous level led to a slump in the huge real estate industry, which supports millions of jobs..
Smaller developers have been forced into bankruptcy and some have defaulted, causing global financial markets to worry.
The government work report published online also cited preventing “unregulated expansion” of the real estate market.
A central bank official said, last Friday, that real estate activity is recovering and that lending for construction and home purchases is on the rise..
A recovery driven by consumer spending is likely to be more gradual than one driven by government stimulus or a real estate investment boom.
But Chinese leaders are trying to avoid reigniting high debt and want to support self-sustaining growth that relies on consumption rather than exports and investment.
#China #calls #risk #prevention #real #estate #sector