BEIJING — Chinese policymakers are unlikely to shore up the country’s struggling real estate sector, analysts told CNBC, even as the housing slump drags on economic growth.
The assessment comes as China’s top leaders, called the Central Committee, are due to wrap up a four-day meeting Thursday, which will outline priorities for the next five years.
In Beijing’s view, the property sector’s drag on growth has eased, while technological development is a more urgent priority in the current geopolitical landscape, said Ning Zhu, author of “China’s Guaranteed Bubble.” To him, that means Beijing is unlikely to enact significantly stronger real estate support.
After years of concern over property developers’ debt that led to Beijing’s crackdown, Chinese state media said earlier this month that “risks in key areas have been effectively prevented and mitigated,” according to a CNBC translation. The piece was part of a series of articles highlighting achievements over the past five years while highlighting Beijing’s push to promote opportunities in tech.
That underscores further divergence between Beijing’s view and that of most analysts.
