The slump in China’s property market has not yet bottomed out and will continue to be a drag on economic growth, former finance minister Lou Jiwei warned, calling for expansionary fiscal and monetary policies as well as structural reforms to counteract the sector’s persistent headwinds.
Policymakers have pushed to phase out the industry’s controversial presale system and ensure home deliveries in recent years, but “the pace can be accelerated”, Lou said at the 2025 Caixin Summit in Beijing on Friday.
The downturn in the property market has dampened consumption growth and reinforced deflationary pressures, meaning “expansionary fiscal and monetary policy will be needed for some time”, the former finance minister said.
By linking education, healthcare and pensions to the hukou, the system is widely regarded as a driver of disparities between urban and rural areas.
