Crackdown on property sector “doom-mongering” intensifies
Authorities are keen to stamp out growing pessimism about the property sector.
On December 17, Beijing’s municipal housing regulators said they had recently summoned major social media platforms and online property brokerages for a chat.
The details: Companies were told to
- Spreads property-related “doom-mongering” and stirs market panic
- Contains false or misleading information about real estate policies and regulations
FYI: Regulators in Shanghai are undertaking a similar crackdown.
The regulators said over 2,300 accounts and livestreaming rooms had already been banned or suspended as part of the crackdown.
- They stressed that enforcement would intensify to protect market order and ensure that
“positive voices” continue to lead the public narrative.
Get smart: With the property downturn now entering its fifth year, a steady drumbeat of bad news – weak sales data, falling prices, and developer stress – continues to weigh on already-fragile homebuyer confidence.
- Officials worry that unchecked pessimism could further delay purchase decisions and even push more homeowners to sell, prolonging downward pressure on prices.
Reality check: The fact that authorities are resorting to narrative management underscores the limits of China’s current property toolkit.