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More policy action needed to revive property sector

Recent policy announcements have raised hopes that the property downturn may be coming to an end. But while the measures made public so far reduce some of the downside risks by giving developers and their creditors a little breathing room, they fall short of what’s needed to drive a turnaround in the sector. We do expect new home sales to eventually bottom out next year but not until local governments provide greater fiscal support to developers.

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