China pledges help for renters, among other moves to prop up its ailing property market

BANGKOK (AP) — China promised more help for renters as it rolls out a flurry of measures to prop up its ailing property market, while also promising to keep government spending at a “necessary intensity.”

The moves to increase the supply of affordable housing and spur demand come just weeks before top officials will gather in Beijing for the annual meeting of the national congress, a time when the ruling Communist Party will want to showcase its leadership.

Chinese stocks sank on Friday, dragged lower once again by property-related shares despite a campaign to build confidence in the slowing economy. The real estate industry's woes were highlighted earlier this week by an order by a Hong Kong court for the liquidation of China Evergrande, the world's most heavily indebted developer with more than $300 billion in debts.

China's property sector accounts for nearly a third of the country's economic activity and an industry-wide meltdown, triggered by a crackdown on excessive borrowing that began several years ago, has weighed on growth and sapped the confidence of both investors and consumers.

The economy expanded at a 5.2% annual pace last year but is forecast to slow this year.

The sluggish property market also has dented local government revenue from vital land use sales, adding to public debt. The Finance Ministry reported Thursday that land sales revenues fell 13.2% in 2023 from the year before.

The government recently has expanded access to loans to help developers recover from the downturn. On Thursday, Wang Dongwei, a vice minister of finance, pledged to keep spending at a “necessary intensity.”

Various regions in China have issued “white lists” of projects that qualify for lending, a key part of the government's effort to revive the industry.

The central bank...