Securities Daily: Understanding the Logic Behind the Reiteration of "Stabilizing the Real Estate Market"

The Politburo meeting of the Central Committee of the Communist Party of China held on July 30 emphasized the need to "stabilize the real estate market," placing this statement within the framework of "effectively building a safety barrier." This subtle change reflects an upgrade in the positioning of real estate from a focus on risk prevention in key areas to a safety dimension. In my view, incorporating real estate stability into the "safety barrier" framework is not only a natural extension of risk prevention logic but also a practical necessity for stabilizing growth and promoting consumption. How should policies be implemented in the second half of the year? Three directions are particularly crucial. Direction one: smooth the "selling old and buying new" chain. From a macro perspective, the meeting clearly stated the need to "effectively implement a more proactive fiscal policy and moderately loose monetary policy," and requested the "timely planning and introduction of practical and effective incremental policies." Next, the acceleration of special bond issuance, a decline in mortgage interest rates, and reserves of incremental policies are expected to create synergies; policies such as reserve requirement ratio cuts, interest rate reductions, and relaxation of purchase restrictions in first-tier cities are anticipated to be introduced. Beyond macro policy efforts, resolving blockages in the chain of trading up from second-hand to new homes at the local level is equally important. Direction two: continuously advance the resolution of real estate enterprise debt risks. In terms of policy measures, we should continue to effectively utilize special relief funds and real estate financing coordination mechanisms to ensure the timely delivery of sold projects. At the same time, local governments should reasonably meet the demand for development loans and acquisition loans for high-quality enterprises, systematically resolving the existing debt risks of real estate companies. Direction three: actively explore new development models. Recently, cities like Guangzhou have been advancing innovative practices such as the reform of existing housing sales, which are expected to provide pathways for the industry to transition from traditional models to "high quality, better service." While the industry is bidding farewell to the old cycle of large-scale new commodity housing, there is still considerable space for construction in areas like affordable housing, urban renewal, and revitalization of existing properties. Promoting new models in these fields will help construct a new housing pattern with a dual track of "market + security" running in parallel.