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Take targeted policies to cut excess urban real estate inventory

At present, there is still excess supply in the real estate markets of third- and fourth-tier cities. We will support both local and new residents in buying homes for personal use.

We need to be clear that housing is for people to live in, and local governments should take primary responsibility in this respect. We should move faster to establish robust long-term mechanisms for promoting the steady and sound development of the real estate sector and build a better housing system that gives equal weight to buying and renting, with multiple levels of demand being met primarily by the market, and basic housing support provided by the government. We will take more category-based and targeted steps to regulate the real estate market. Cities that are under big pressure from rising housing prices need to increase as appropriate the supply of land for residential use. We should better regulate housing development, marketing, and intermediary services, and keep home prices from rising too quickly in popular cities.

Today several dozen million people still live in rundown areas in cities and towns. We must continue housing renovations in these areas. This year, we will renovate another 6 million housing units in these areas, continue to develop public rental housing and other forms of government-subsidized housing, base measures on local circumstances and use multiple means to increase the use of monetary compensation for those affected by such rebuilding, and improve local infrastructure and public services. With these efforts, we will help more families struggling with housing to bid farewell to rundown areas, and see that with good roofs over their heads our people move on to better lives.

Carry out deleveraging in an active and prudent way

There is high leverage in nonfinancial Chinese firms. This is caused by high savings rates and the composition of financing which is primarily based on credit. While working to control overall leverage, we should focus on bringing down the leverage of enterprises. We need to see that the idle assets of enterprises are put to use, push ahead with securitization of corporate assets, support market- and law-based debt-to-equity swaps, develop the multilevel capital market, expand equity financing, and place tighter constraints on enterprises, especially SOEs, in leveraging, so as to gradually reduce enterprise debt to an acceptable level.

Take multiple measures to cut costs

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