On Monday, China’s leaders emphasised the critical need to prevent and mitigate financial risks, highlighting their connection to national security and the protection of citizens’ assets. The Politburo, the ruling Communist Party’s top decision-making body, described these risks as a “major hurdle that must be overcome,” according to state media reports.
Valuations of property, which accounts for around half of household wealth in China, have slumped across the country in recent years due to persistently declining prices as the sector convulsed and market sentiment flattened under a mountain of debt held by developers.
China announced “historic” steps in May. 17 to stabilise the property sector, including cutting down payment requirements and removing the floor for mortgage rates, aiming to clear inventory and boost homebuyer demand.
The Politburo, in a meeting chaired by President Xi Jinping, reviewed the regulations on accountability for preventing and resolving financial risks, saying they must be “strict” to send a strong signal on responsibility.
The Politburo said that financial supervision should have “thorns” and be sharp.
With Inputs From Reuters
