"15th Five-Year Plan" Reshapes Real Estate Positioning; Risk Mitigation and Institutional Reconstruction Proceed in Parallel

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Caixin published on March 13th the “Outline of the 15-Year Plan for National Economic and Social Development” (hereinafter referred to as the “Outline”), which dedicates a separate chapter to real estate, proposing to “accelerate the development of a new model for real estate, improve a multi-entity supply, multi-channel保障, and a housing system that combines rental and purchase, to achieve a higher level of housing security.”

The “Outline” also states in the first chapter that “preventing and resolving risks related to real estate, local government debt, and small and medium financial institutions remains a heavy task.”

From these two statements, it appears that during the 14th Five-Year Plan period, real estate is assigned a dual task: on one hand, to resolve the stock risks in the market; on the other hand, to promote institutional reform in the industry.

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