Emphasizing the adjustment and optimization of real estate policies, the State Council will deploy heavily! Further Propose the Policy of "Active Capital Market" | Follow up | Capital Market
According to the news broadcast, on July 31, Premier Li Qiang of the State Council presided over an executive meeting of the State Council to study and implement the spirit of General Secretary Xi Jinping's important speech on the current economic situation and economic work, and to study the follow-up arrangements for the expiration of phased policies.
We need to strengthen research on countercyclical regulation and policy reserves, and introduce new policy measures to better reflect the pertinence, combination, and synergy of macroeconomic policies. Efforts should be made to stimulate the vitality of private investment, accelerate the resolution of the problem of overdue corporate accounts, and resolutely crack down on arbitrary fees, fines, and assessments. To activate the capital market and boost investor confidence.
The meeting emphasized the need to adjust and optimize real estate policies, introduce policy measures that are conducive to the stable and healthy development of the real estate market according to different needs and cities, and accelerate the research and construction of new development models for the real estate industry.
The meeting pointed out that making follow-up arrangements for the phased policies that will expire in the next two years is of great significance for enterprises to stabilize their expectations, boost confidence, and arrange investment and operation well. This policy extension involves multiple projects, a wide range of fields, and a long duration, which is in line with the expectations of the enterprise. It is necessary to carefully carry out publicity and interpretation, and comprehensively promote implementation.
Strive to stimulate the vitality of private investment
As an important component of China's national economy, the private economy is an important driving force for economic growth and an important subject for promoting innovation. As the economy enters a new normal, it has become an indispensable force for promoting high-quality economic development.
We need to strengthen research on countercyclical regulation and policy reserves, and introduce new policy measures to better reflect the pertinence, combination, and synergy of macroeconomic policies. Efforts should be made to stimulate the vitality of private investment, accelerate the resolution of the problem of overdue corporate accounts, and resolutely crack down on arbitrary fees, fines, and assessments. To activate the capital market and boost investor confidence.
Data shows that in the first half of this year, private investment, excluding real estate development, increased by 9.4% year-on-year, with a growth rate 5.6 percentage points higher than all investments; Private investment in the manufacturing industry increased by 8.4%, 2.4 percentage points higher than the overall investment in the manufacturing industry, especially in areas such as clean energy and electric vehicles where private investment is relatively active; Private investment in infrastructure increased by 15.6%, which is 8.4 percentage points higher than the overall investment in infrastructure, demonstrating strong investment confidence and motivation.
However, "since this year, the growth of private investment has really suffered from greater pressure." Han Zhifeng, Deputy Director of the fixed assets investment Department of the National Development and Reform Commission and a first level inspector, pointed out that due to insufficient demand and other problems, some enterprises have not yet fully recovered their confidence; From the perspective of investment environment, recently there were some unfriendly comments on the internet about the private economy and private enterprises, which affected the enthusiasm of some enterprises and localities; From the perspective of work methods, in some places, there is still a lack of innovative ideas, market-oriented methods, and reform measures when encouraging and promoting private investment, resulting in problems such as not being able to encourage and not being good at encouraging.
In response to this, the National Development and Reform Commission recently issued a notice on further promoting private investment and striving to mobilize the enthusiasm of private investment, proposing 17 targeted and specific measures to help solve the bottlenecks and difficulties encountered by private investment.
At the same time, many regions have recently introduced policy measures to support and promote the development of the private economy by breaking down various implicit barriers and supporting private enterprises to participate in major project construction.
At the end of May, the Shanghai Municipal Government issued "Several Policy Measures to Intensify Support for the Development of Private Investment", proposing 20 measures to support private investment in major projects, increase the reserved share of government procurement projects for small and medium-sized enterprises to over 40% in stages, and encourage private capital to invest in new infrastructure.
On June 18th, the Chongqing Municipal Party Committee and Government issued the Implementation Opinions on Promoting High Quality Development of the Private Economy, proposing a series of specific measures to support the innovative development of private enterprises, encourage private capital to participate in major project construction mechanisms, and periodically reduce the capital occupation fees generated by small and medium-sized enterprises using government loan funds until the end of 2027.
Zhao Wei, Chief Professor of the Private Economy Research Center at Zhejiang University, pointed out that the development of private economy is related to the process of China's market-oriented reform. It is not only a barometer and driving force for improving the broad business environment at the regional economic level, but also a fundamental factor for China to achieve common prosperity.
Zhao Wei suggests creating a public opinion environment that respects private entrepreneurs, encourages private investment, and promotes the development and innovation of private enterprises. Clarify the misunderstandings and misleading policies and measures regarding the private economy and private enterprises in recent years, and create a fair and just investment and business environment for the private economy, private enterprises, and entrepreneurs. At the same time, we need to shift from accelerating the legislative construction of protecting the property rights and related rights of private enterprises to achieving judicial fairness.
Introduce policy measures that are conducive to the development of real estate according to local conditions
The meeting emphasized the need to adjust and optimize real estate policies, introduce policy measures that are conducive to the stable and healthy development of the real estate market according to different needs and cities, and accelerate the research and construction of new development models for the real estate industry.
Recently, Minister of Housing and Urban Rural Development Ni Hong emphasized at an enterprise symposium that we should continue to consolidate the stable and rebounding trend of the real estate market, vigorously support the demand for rigid and improved housing, further implement policy measures such as reducing the down payment ratio and loan interest rate for purchasing the first home, reducing the tax and fee for purchasing improved housing, and providing personal housing loans with "no need to subscribe for housing".
After the Central Political Bureau meeting set the tone to "adjust and optimize real estate policies in a timely manner" and the Ministry of Housing and Urban Rural Development clarified the direction of policy support, many regions have begun to implement it urgently, and first tier cities such as Beijing and Shenzhen have successively expressed their opinions.
On the evening of July 29th, the Beijing Municipal Commission of Housing and Urban Rural Development stated that it will combine the actual situation of the Beijing real estate market, work together with relevant departments to quickly implement the work, strongly support and better meet the rigid and improved housing needs of residents, and promote the stable and healthy development of the Beijing real estate market.
On July 30th, the Shenzhen Housing and Urban Rural Development Bureau announced that it will combine the actual situation of Shenzhen's real estate with relevant departments, central agencies in Shenzhen, and various districts to implement and better meet the rigid and improved housing needs of residents.
Yan Yuejin, Research Director of E-house Research Institute, pointed out that the statement made by the Beijing Municipal Commission of Housing and Urban Rural Development has signal significance, indicating that various regions are actively implementing the relevant policies and spirits of the Ministry of Housing and Urban Rural Development, and in turn, it indicates that there will be various actions or strategies in various regions in the near future. In addition, it also indicates that there is a possibility of policy relaxation in first tier cities, and it is expected that relevant policies will be introduced in August, such as relaxation for suburban markets and relaxation for second-hand housing.
Wang Qing, Chief Macro Analyst of Dongfang Jincheng, pointed out in an interview with Securities Times that the central bank, Ministry of Housing and Urban Rural Development, and other departments are accelerating the pace of industry policy adjustments in recent times. Possible measures are expected to include: under the principle of implementing policies tailored to the city, moderately relaxing loan and purchase restrictions, including some areas in first tier cities; Various regions have generally increased their support for housing provident fund purchases; Accelerate the nationwide promotion of the "mortgage transfer" model, activate the second-hand housing market, and further guide residents to lower mortgage interest rates, and even moderately lower the interest rates of existing housing loans. It is expected that the LPR quotation for more than 5 years in the second half of the year may be separately lowered. The overall goal is to guide the real estate industry to achieve a soft landing as soon as possible.
Research on follow-up arrangements for phased policies regarding expiration
Wang Qing pointed out that from the current economic situation, after the stable transition of the epidemic in the first half of the year, it was mainly driven by the rebound in consumer demand, and the overall macroeconomic recovery was positive, with a significant rebound in GDP growth rate. However, since the second quarter, the recovery of household consumption has slowed down, the real estate market has weakened again, and private investment has shown year-on-year negative growth. Insufficient market demand has had a significant impact on private enterprises and small and micro enterprises, and their profits have continued to decline, facing certain difficulties in operation. At the same time, the credit risks in the real estate industry and urban investment platforms in the second quarter have attracted market attention. Therefore, with a focus on ensuring people's livelihoods and stabilizing employment, and promoting the momentum of economic recovery in the second half of the year, we need to strengthen research on countercyclical regulation and policy reserves.
The meeting pointed out that making follow-up arrangements for the phased policies that will expire in the next two years is of great significance for enterprises to stabilize their expectations, boost confidence, and arrange investment and operation well. This policy extension involves multiple projects, a wide range of fields, and a long duration, which is in line with the expectations of the enterprise. It is necessary to carefully carry out publicity and interpretation, and comprehensively promote implementation.
"This meeting proposes to 'study the follow-up arrangements for policies related to the expiration stage'. Wang Qing believes that this mainly refers to the extension of the tax reduction and financing support policies for small and micro enterprises and individual businesses, as well as the extension of stable employment policies, especially policies to promote youth employment and entrepreneurship, and may further increase policy support.".
Wang Qing stated that overall, after the meeting of the Central Political Bureau on July 24th, various regions and departments are actively taking action in accordance with the spirit of the meeting, and a batch of stable growth policies and measures have been intensively introduced, significantly boosting market confidence. It is expected that under the impetus of stable growth policies, the momentum of economic recovery in the third quarter will strengthen. The manufacturing PMI index continued to rebound in July and is expected to return to the expansion range in August and September.
