"Government Intervention Urgently Required to Stabilize China's Deepening Property Crisis"

China's property market is in need of more government support to prevent further deterioration, as existing home prices fell in October by the most since 2014 and outstanding property loans fell for the first time in history. The government's focus on boosting demand has not addressed the credit risk related to developers, which could lead to a self-fulfilled confidence crisis. Real estate and related sectors currently account for about 22% of China's GDP. Recent data suggests that the property sector troubles are worsening, with larger cities experiencing declines in home prices. Policymakers have signaled more support, including allowing lending to real estate developers and emphasizing the development of affordable housing. However, more support is still needed to boost private sentiment.