China moves to stabilise property sector with ‘stronger-than-expected’ policy package

China's government has introduced a significant policy package aimed at stabilizing its struggling property sector. On Friday, Beijing announced reforms to the home sales system, instructing local governments to prioritize sales of completed homes over the presale model. This initiative, jointly issued by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration (NFRA), seeks to address a prolonged property downturn impacting consumer demand. Additionally, the central bank and NFRA introduced new rules for development loans, while the securities regulator will support listed developers in mergers and restructurings. These measures represent a stronger-than-expected effort to inject stability into the market.