China Signals Loosening of Property Curbs as Xi's Mantra Omitted
China Signals Loosening of Property Curbs as Xi's Mantra Omitted
(Bloomberg) -- China signaled it may be open to loosening controls over the housing market, after President Xi Jinping’s mantra that property isn’t for speculation was omitted from a key report to the National People’s Congress.
Xi’s famous vow that “houses are built to be inhabited, not for speculation” didn’t appear in Premier Li Keqiang’s work report delivered Tuesday to the annual parliamentary gathering in Beijing. Dropping the wording, which became ubiquitous after Xi used it in a speech in 2017, may spur speculation that the government will tolerate an easing of property curbs as it grapples with a sharp economic slowdown.
“The fact that the ‘not for speculation’ words aren’t included in the key work target report sends a loud signal,” said Zhang Dawei, an analyst at property real estate agency Centaline Group. “It shows the most stringent policies are already behind us.”
Local authorities have rolled out a “stealth easing” of property restrictions -- such as relaxing age limits on residency permits -- in recent months as the housing market cools. Yet they have been reluctant to unwind some of the more stringent measures, such as down-payment thresholds and lending curbs, without the tacit approval of the central government.
To contact Bloomberg News staff for this story: Emma Dong in Shanghai at edong10@bloomberg.net
To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter Vercoe
©2019 Bloomberg L.P.
With assistance from Bloomberg