Housing reform:Next year will see how China starts to establish the“long-term mechanism”for the property market.We will closely watch progress in(1)the control over property-related risks,(2)public and rental housing development,(3)land supply reform,(4)coordinated regional development,and(5)preparation work for property tax.However,the policy intention is to“freeze”the bubble but not“burst”the bubble.Our base case is a policy-led slowdown in property investment,from 6% in 2017 to around 5% in 2018,which will still be resilient.
20171207-CITIGROUP-CHINA_ECONOMICS_VIEW:PROSPECTS_2018,A_DEFINING_YEAR_TO_SET_.pdf
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