Healthier property sector key to boosting growth

This year's Government Work Report, for the first time, proposed stabilizing the real estate market, showcasing China's strong focus on the critical sector. Given its substantial influence and associated risks, a healthier property industry will play a vital role in boosting China's economy.

Driven by a series of supportive policies, the decline in housing sales and prices has gradually narrowed, and the real estate market in first-tier and some second-tier cities has shown signs of stabilization since the fourth quarter.

However, risks still exist. Some real estate enterprises are facing heavy liquidity risks, difficulties in repaying their debts and continuous declines in returns on investment brought about by rising asset impairments. Local governments are bearing fiscal pressure from dwindling land transactions, while slumping property investment levels undermine both economic growth and investment confidence of private enterprises.