Latest fraudulent alert - last updated on Apr 2023. To find out more information and how to protect yourself, please click here.

Investment Institute
Macroeconomic Research

China’s property sector: This time is different

  • 09 March 2022 (7 min read)

Key Points

  • China’s property market is now enduring its longest and most painful adjustment despite brief relief after the initial wave of the pandemic.
  • Yet, not only has Beijing so far refused to come to the market’s rescue, much of the downturn has in fact been a result of its restrictive policies.
  • We think these policies – to address structural imbalances of the real estate sector – are fundamentally different from past attempts to cool a cyclically overheating market. With slowing population growth and changing national development strategies, Beijing is redefining the role of real estate under the banner of a ‘house is for living, not speculation’
  • The challenge of achieving this objective lies in fundamentally reallocating resources away from a gigantic sector which is deep-rooted in China’s social, economic, and financial ecosystem. A disorderly correction could have catastrophic consequences.
  • Hence, a pragmatic approach is needed to manage systemic risks. As Beijing’s priority now shifts to stabilising growth, policies are fine-tuned to put a floor under the market. A gradual bottoming out of activity is expected as credit conditions improve, but not enough to fully remove stress on the weakest developers. The latter will likely continue to bear the brunt of the adjustment pains.
Download the research note
Download report (535.53 KB)

Related Articles

Macroeconomic Research

Brick by Brick: Unravelling China's property Puzzle

  • by Yingrui Wang
  • 02 May 2024 (10 min read)
Macroeconomic Research

Framing the ECB’s rate cutting cycle

Macroeconomic Research

2024’s elections around the world: The who’s who and the so what…

  • by Irina Topa-Serry, Luis Lopez-Vivas, and others
  • 23 January 2024 (7 min read)


    This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.

    Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone. 

    Some of the services listed on this Website may not be available for offer to retail investors.

    This Website has not been reviewed by the SFC. © 2023 AXA Investment Managers. All rights reserved.