Morgan Stanley's Xing Ziqiang: "New Three Major Engineering" and other policies help stabilize the real estate market and prevent further decline

On October 25th, at the "2024 China Real Estate Finance Forum" hosted by the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, Xing Ziqiang, Chief Economist and Managing Director of Morgan Stanley China, stated, "Development is the cornerstone of security. The systematic combination of the two is to see the improvement of people's livelihoods, which can help judge the determination and intensity of the economic and real estate policy shift since September." He elaborated on the path and time needed for the Chinese real estate market to achieve balance and enter a new normal compared to other countries globally, as well as the role that policies can play in this process. He predicted the "new three major projects" policy to help gradually stabilize the real estate market, including the central government using fiscal measures to destock, enhance the social security system, and elevate a comprehensive fertility policy to a national action plan. In addition, Yan Hong, Chair Professor of Finance and Academic Vice Dean, pointed out the issues in the REITs market in terms of expansion, active management capabilities, and market volatility. He proposed relaxing expansion constraints, constructing a multi-level REITs market, unifying the rights and responsibilities of REITs managers, allowing more financial products and investment entities to enter the REITs market, and encouraging long-term and stable capital to enter the market