China\u2019s property downturn and sluggish consumer spending have become twin anchors weighing down the economy over the past few years. Now, scholars at a top Beijing university are proposing a measure they believe could ease both problems: a mortgage subsidy.<\/p>\n
The Tsinghua University economists have called for the introduction of mortgage interest rate subsidies as part of a wider effort to stabilise the property market, arguing that arresting the decline in housing prices<\/a> will be critical to getting households spending.The proposal comes as China looks to domestic consumption<\/a> to shore up economic growth amid a volatile external environment, while a years-long real estate slump undermines household finances and weighs on confidence.<\/p>\n Given that nearly 80 per cent of China\u2019s household wealth is tied up in property, a mortgage subsidy could play an important role in boosting consumption if it helps to stabilise property prices, researchers from the university\u2019s Academic Centre for Chinese Economic Practice and Thinking (Accept) said during an event on Tuesday.<\/p>\n \u201cFluctuations in housing prices can have a major impact on residents\u2019 wealth, which in turn affects their consumption potential,\u201d they added.<\/p>\n The team estimated that home prices in China\u2019s major and medium-sized cities had fallen 16.5 per cent over the past three years, leading to a 13 per cent shrinkage in urban household assets.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s property downturn and sluggish consumer spending have become twin anchors weighing down the economy over the past…\n","protected":false},"author":2,"featured_media":245194,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[123503,2102,72,114,81555,9921,19204,113,123501,61,60,123500,123502,12051,19205,19206,43870,27593],"class_list":["post-245193","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-academic-centre-for-chinese-economic-practice-and-thinking-accept","tag-beijing","tag-business","tag-china","tag-chinas-property-market","tag-consumer-spending","tag-domestic-consumption","tag-economy","tag-falling-housing-prices","tag-ie","tag-ireland","tag-mortgage-interest-rate-subsidies","tag-mortgage-subsidy","tag-national-bureau-of-statistics","tag-premier-li-qiang","tag-property-investment","tag-property-market","tag-tsinghua-university"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/245193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=245193"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/245193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/245194"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=245193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=245193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=245193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}