China housing: Limited rescue, lingering correction – Standard Chartered

The recent analysis of the Chinese housing market indicates that long-term priorities are constraining policy space, limiting the scope for meaningful housing support. As a result, a housing correction is expected to persist until 2026. This situation may impose a tough reality for investors. Due to constraints on policy, the housing market is unlikely to regain equilibrium in the short term. A lack of stability in emerging markets is another crucial factor affecting China's housing sector, particularly its investment segment. The government is unable to implement sufficient measures to support the market, potentially undermining investor confidence and having broader repercussions on the economy, indicating that further correction is necessary. Staying alert to future trends and ready to act as needed is vital.