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Government Work Report lists real estate stabilization, stock market rejuvenation high on agenda in 2025
Cranes are seen at a construction site of a housing complex in Beijing. Photo: VCG
This year’s Government Work Report spells out an innovative approach to macroeconomic regulation by the central government, with stabilizing the property and stock market being included in the overall requirements government work for the first time in 2025, an official said on Wednesday.
The innovative approach in macroeconomic policy aim to create a virtuous cycle between economic development and improving people’s livelihood, and between promoting high-quality development and stabilizing growth and employment, Chen Changsheng, a member of the Government Work Report Drafting Team and deputy director of the State Council Research Office, said on Wednesday at a press briefing that explains the Government Work Report delivered to this year’s NPC session.
“The report underscores the importance of asset prices as a component of macroeconomic regulation, incorporating the stabilization of the real estate and stock markets into the overall requirements for the first time,” Chen said.
When addressing policy measures to promote a moderate rise in prices, Chen stated that greater efforts will be needed to stabilize the real estate and stock markets. The remarks were made when explaining the development target of the consumer price index (CPI), which is projected to increase by around 2 percent in 2025 in the Government Work Report.
“The real estate and stock markets serve as two important barometers of economic performance, with real estate constituting the largest portion of household assets. Stabilizing these markets can unleash a wealth effect, better boost consumption, and more effectively facilitate a moderate rise in consumer prices,” Chen said.
The improvement of the stock market can directly generate a wealth effect, bringing higher income to China’s over 200 million stock investors and many households, which is also a good measure to boost domestic consumption, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Wednesday.
“Since the policy re-pivot on September 24 in 2024, China’s stock market has seen an extended run of volume-driven rallies. The daily trading volume in the stock market has risen from around 500 billion yuan ($68.9 billion) before September 24 to over 1 trillion yuan. This indicates a substantial increase in investors’ willingness to invest,” said Yang.
In terms of the real estate sector, the Government Work Report said that “we will make continued efforts to stem the downturn and restore stability in the real estate market.”
“To meet people’s demand for high-quality housing, we will improve the standards and regulations on building quality homes that are safe, comfortable, eco-friendly, and smart,” the report noted.
The phrase “quality homes” was featured in the Government Work Report for the first time. Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Wednesday.
“It reflects the solid fundamentals for the real estate sector, thanks to the efforts done in 2024. Meanwhile, the high-quality development of the real estate sector is being promoted simultaneously with the stabilization of the property market,” said Yan.
The promotion of “quality homes” is in line with high-quality urban planning, as “quality homes” need to be supported by a more optimized urban management system, Yan noted.
Chen also pointed out that the Government Work Report explicitly emphasizes strengthening the people’s livelihood-oriented direction of macroeconomic policies, stressing “allocating more policy resources to invest in people and improve people’s livelihood.”
As one of the innovations, the report challenges the conventional notion that “consumption is a slow variable,” placing greater emphasis on boosting domestic consumption and highlighting the need for interaction between promoting consumption and expanding investment, Chen added.
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