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hina's real estate market remains a pressing concern despite the government's stimulus measures. According to recent data from the National Bureau of Statistics, sales prices in commercial residential properties have increased month-on-month in many cities, with first-tier cities experiencing general price increases and second- and third-tier cities showing less severe declines. This marks a narrowing year-over-year price decrease across all city tiers for the first time this year.

    The Central Economic Work Conference has identified stabilizing both the real estate and stock markets as its main focus for next year's economic work, signaling a stronger commitment from the central government to address real estate risks. The conference emphasized managing critical sector risks and avoiding systemic financial risks, with real estate risk prevention being a focal point for the third consecutive year.

    The real estate industry remains a key pillar of domestic demand, driving consumption and stimulating various upstream and downstream industries through investment and consumption. Land revenue is also a crucial component of local government finances, accounting for over 40% of total revenue in 2023. A collapse of the real estate sector would severely impact China's economy, employment, local government finances, and financial stability.

    Given its importance to the economy, the central government has intensified efforts to stabilize the real estate market, with support policies expected to be more fully implemented next year. Managing real estate risks is a critical step in preventing systemic financial instability due to the sector's deep connection to local government debt and financial institutions.