Chinese academic Yi Xianrong remarks that while the Chinese government had emphasised stability for the property sector in recent years, the market was in dire straits in 2022, marked by abysmal sales and financial figures and rock-bottom consumer confidence. Faced with these tough challenges, the Chinese government has made significant changes to its real estate policies this year. But it will not be a smooth road ahead to drive the transformation of the ailing sector.
To revive China’s property market, local governments in some cities have implemented a slew of changes to ease property restrictions, with some even allowing the use of crops as a down payment for a home. However, these policies present many risks to the market. Chinese academic Yi Xianrong believes that a return to a consumption-led market is the only viable way to lower the risk in China’s property market.
Over the past year, the Chinese government has taken strong action against monopolistic practices in the platform economy. However, with the effects of the pandemic, the economy needs a boost and the platform economy seems to be the way to lift it. Chinese academic Yi Xianrong says that to truly harness the strengths of the platform economy, the authorities need to see that it is a totally different entity from the traditional economic sectors and its governance needs some deep thinking.