The Political Bureau of the CPC Central Committee held a meeting on September 26 to analyze and study the current economic situation and deploy the next steps for economic work.

The meeting emphasized the need to increase the countercyclical adjustment of fiscal and monetary policies, ensure necessary fiscal expenditures, effectively carry out grassroots "three guarantees" work. It is necessary to issue and make good use of ultra-long-term special national bonds and local government special bonds, to better leverage the role of government investment.

To lower the reserve requirement ratio, implement substantial interest rate cuts. To promote the stabilization and recovery of the real estate market, strict control over the increment of commercial housing construction, optimization of existing stock, improvement of quality, increased efforts in loan issuance for projects on the "white list", and support to revitalize idle land resources.

To address public concerns, adjust housing purchase restrictions, lower interest rates on existing stock housing loans, promptly improve land, fiscal, tax, financial policies, and promote the establishment of a new model for real estate development.

On September 24, Guo Shuqing, Governor of the People's Bank of China, announced the implementation of five new real estate financial policies. Wang Hongwei, a professor at the Shanghai University of Finance and Economics, believes that these new real estate financial policies aim to stimulate consumption and reduce inventory, with a precise direction and strong pertinence, expecting to produce significant effects.

"Lowering the interest rates on existing stock housing loans will reduce the housing costs for the general public, helping to stimulate the demand for home purchases." Wang Hongwei stated that the stabilization and warming of the real estate market will play an important supportive role in the solid recovery of the economy.

Wang Hongwei believes that there are many highlights in these new real estate financial policies, and it will require 30-45 days to observe the policy implementation effects.

If the effect is significant, and residents' expectations for home purchases recover, consideration can be given to strengthening existing policies.

Real estate-related industry chain companies:

China Overseas Land & Investment Ltd (00688), C&D International Group Co., Ltd. (01908), Yuexiu Property Company Limited (00123), Greentown China Holdings Limited (03900), Sunac China Holdings Limited (01918), Longfor Group Holdings Limited (00960), Sino-Ocean Group Holding Limited (03377), China Vanke Co., Ltd. (02202), China Resources Land Limited (01109), and Agile Group Holdings Limited (00884).

Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).

Real estate intermediaries: Ke Holdings (02423), CG Services (06098)