China has decided to postpone significant stimulus measures while indicating its intention to ease the property market.

China’s top leaders have indicated their intention to provide more support for the troubled real estate sector and have pledged to boost consumption while addressing local government debt. However, they have refrained from announcing large-scale stimulus measures to bolster the slowing economic recovery. The ruling Communist Party’s Politburo, led by President Xi Jinping, promised a “counter-cyclical” policy, suggesting further economic support and adjustments to property sector restrictions. The meeting, which set the economic policy agenda for the rest of the year, did not include language indicating significant fiscal or monetary loosening. Financial markets showed limited enthusiasm for the measures. The meeting emphasized the importance of domestic demand over industrial policy and stressed the need to address local government debt risks. The language on property was softer than in previous meetings, and the government is considering easing home-buying restrictions. Fiscal policy language remained largely unchanged, with a call for faster issuance of local government bonds. Monetary policy language indicated the central bank may provide targeted liquidity to support favored sectors, while keeping the yuan’s exchange rate stable. The Politburo expressed confidence in the country’s long-term fundamentals and vowed to address new challenges in economic operation. Additionally, the meeting included a commitment to drive the healthy development of internet platform firms and boost the consumption of cars and electronic products.