Following today’s Politburo meeting statement promising new policy support for the property industry, few events are more important for the 2022 outlook than the annual mid-December Central Economic Work Conference (CEWC). Today’s Politburo statement and the announcement of a 50 bps cut to banks’ required reserve ratios (RRR) will be read as the start of a meaningful set of countercyclical policy measures to support the flagging economy. Markets will eagerly watch the CEWC for more signals—including the annual GDP growth target—that this policy support will be sufficient to reverse the current downturn in the property market and the economy as a whole.
