Beijing may roll out more property easing

Bloomberg and staff reporter

Chinese authorities may further soften their stance on property policies at its key economic meeting next week after the Communist Party's top decision-making body said it will seek a turnaround in the economy for 2023, according to people familiar with the matter.

The news came amid reports that a state-owned enterprise promised to make up the difference to buyers if the developer reduces the price of homes in future batches.

The annual Central Economic Work Conference, where policy makers discuss next year's goals including the gross domestic product target and the budget deficit, will start on December 15, according to people with knowledge of the arrangement.

They may also declare the nation's years-long campaign to deleverage its property market is completed with the focus for next year on boosting consumer demand, one of the people said.

The politburo, the top decision-making body, said it will seek a turnaround in the economy next year, pledging to keep fiscal policy active and monetary tools targeted and "forceful."

Officials will "push for overall improvement of the economy" by focusing on the quality of growth and keeping the pace of expansion reasonable, the Xinhua News Agency said.

They will also try to "significantly boost market confidence."

"Housing is for living, not for speculation" was not included in the statement released after the meeting, which some analysts have taken as a sign more easing may be in the pipeline.

The CEWC usually takes place shortly after the politburo gathering.

Authorities have taken a number of decisive steps over the past weeks to boost the world's second-largest economy, including scaling back the nation's Covid Zero policies and rolling out forceful measures to backstop the slumping property market. Those came after a sustained campaign over the past years that included a broad crack down on private enterprise that roiled markets.

Chinese stocks have rallied over the past weeks, pushing Hong Kong's Hang Seng China Enterprises up 35 percent from a low at the end of October.

Meanwhile, China Resources Land (1109) is said to have promised to make up the difference to buyers if the developer reduces the price of homes in the future batches at its two new projects in Shenzhen, to boost property sales.

And China Evergrande (3333) is planning to meet with an ad-hoc group of its dollar bondholders today to formally discuss a debt restructuring proposal, people familiar with the matter said