China Takes Steps to Address Property Crisis Ahead of Third Plenum

Key Takeaways

• Last week, the central government introduced nationwide measures to support the beleaguered property sector, including removing the mortgage rate floor, reducing down payment ratios, and creating a RMB 300 billion relending facility for local buyback schemes.
• Despite city- and municipal-level policy adjustments, housing demand remains at an all-time low, with fresh data revealing that home sales in April dropped at their fastest rate in a decade.
• More supportive policies are likely to be announced at the Third Plenum in July.