Property stimulus: announced measures still fall short

Despite driving a surge in developer stock prices, the property support measures announced so far aren’t that different from previous efforts and are unlikely, on their own, to deliver much better results. Achieving the Politburo’s recently upgraded goal of promoting a housing market recovery would require greater fiscal funding for purchases of unsold homes, which could be announced in due course but isn’t guaranteed. And while increased financing for developers via the whitelist scheme should support construction in the near-term, a further pullback looks inevitable over the medium-term.