In an exclusive interview with CGTN’s Guan Xin, Matthew Blake, Head of the Center for Financial and Monetary Systems at the World Economic Forum (WEF), shared his insights on China’s recent measures to bolster its real estate sector. Blake commended the Chinese government’s latest intervention aimed at increasing the supply of affordable housing, describing it as a significant move in the right direction for the industry.
“The property sector is a substantial component of the Chinese economy,” Blake noted. “The government’s efforts to enhance affordable housing accessibility are a positive step towards stabilizing the market.”
However, Blake cautioned that despite these positive developments, the sector continues to face considerable challenges. He emphasized the crucial role of the government in setting market direction and ensuring financial stability. “It’s important for policymakers to continue guiding the market towards sustainable growth while mitigating potential risks,” he said.
Blake also discussed China’s advancements in developing its Real Estate Investment Trusts (REITs) market since its inception in 2020. He highlighted that the REITs market has progressively deepened and broadened, offering greater liquidity and diversification opportunities for both institutional and individual investors.
“REITs have provided a new avenue for investment, contributing to the diversification of portfolios and enhancing market liquidity,” Blake explained. “However, it’s important to recognize that REITs are not a cure-all solution. They are one of many steps necessary to further liberalize and strengthen the market.”
He underscored the importance of a multifaceted approach in addressing the complexities of the real estate sector, suggesting that continued reforms and supportive policies are essential for sustained growth and stability.
Blake’s comments reflect a broader international interest in China’s economic strategies and their global impact. As China continues to implement reforms in its real estate market, stakeholders worldwide are closely monitoring these developments for potential opportunities and challenges.
Reference(s):
WEF comments on impact of China's new real estate policies, REITs
cgtn.com
