China's property market heading for solid recovery, healthy development

RISK PREVENTION ON SUPPLY-SIDE

In this year's government work report, China pledged to ensure effective risk prevention and mitigation in high-quality, leading real estate enterprises, help them improve debt-to-asset ratios, and prevent unregulated expansion in the real estate market to promote stable growth.

To fend off systemic risk triggered by a mix of real estate risks and risks in the financial sector and local government debts, Ni said accurate measures will be taken to offer equal support to quality state-owned and private property developers to improve their debt and asset situations and meet their reasonable financing needs.

At the same time, measures will support property enterprises with risks to survive, with strict crackdowns on violations of people's interests under laws and regulations.

Work will also be done to vigorously rectify the order of the real estate market and create an honest and trustworthy market environment, Ni said.

It offers support from the supply side and helps ease the liquidity strain of the sector by effectively preventing and resolving the risks of high-quality, leading housing firms and improving their balance sheets, according to China Galaxy Securities Co., Ltd.

Everbright Securities Company Limited predicted that based on the strict control of debt scale, the industrial pattern of commercial housing development will be reshaped by meeting reasonable financing demand of the market and prudently dealing with the risks of some leading firms with radical development plans, which will promote the healthy and sustainable growth of the property sector.