Property still vital for China’s confidence, emerging ‘new three’ growth engines to help: Citi economist

A stable property sector continues to be key to restoring both investor and consumer confidence in China’s economy development in 2024, Citigroup’s Greater China chief economist Xiangrong Yu said in an outlook briefing last week.

Second-hand home prices in 70 major Chinese cities have declined as of last November, the first time in nine years, while property sales dropped by 35% year-on-year compared to the peak period in 2021, Yu said. The spillover effect has led to contraction in sectors such as cemetery, glass, furniture and internal design.

Yu called for more timely and more forward-looking policies in 2024, as frequent stimulus measures in 2023 did not...