China’s embattled real estate sector, the pillar of China economy, has continued to show weakness, with property investments falling 9.5% year on year in the first quarter.
China needs a policy package that accelerates the exit of nonviable property developers, promotes the completion of housing projects, and manages debt risks of local governments.
It seems like China has been dedicating to push economic transition, getting rid of the dependence on the export and investment taking more measures to stimulate.
China government should be aware of the urgency of economic transition, should be aggressively pushing consumption by taking more stimulative measures.
Growth in China has been weighed down over the past year by a slump in the country’s traditional economic pillars of real estate, infrastructure and exports.