Chinese home ownership identified as means of boosting flagging economy

Chinese economy: At the end of a key three-day meeting yesterday, China’s senior leaders resolved to help rural residents buy properties in towns and cities and  to encourage real estate developers to cut prices, as they sought to revitalise the country’s flagging economy.   They also resolved to adopt ‘more forceful’ fiscal policies and to take a more flexible approach towards monetary policy, as China’s growth rate looked set to fall to its lowest level since 1991 by the end of the year and to dip even further in 2016. The government is also to look at lowering  operating costs by cutting taxes and social security contributions.
“The government will hover between short-term growth stability and long-term structural reforms,” the head  of Standard Charter’s Head Greater China Economic Research unit Ding Shuang said. “If growth falls below 6.5%, the priority will lean towards growth; and if growth is above 6.5%, structural reform will be put on top of the agenda.”
He also predicted that last week’s decision by the US Federal Reserve’s to raise interests for the first time in a decade last week held risks for China.  “There will be more turbulence next year,” he said.“Supply-side measures are needed, but aggregate demand management must stay as well.”

Source: scmp