"Seeking Truth" publishes another article! Reiterates the need to stabilize expectations in the real estate market

What are the internal and external factors intertwined behind the weak market expectations?

China Real Estate Network News In recent years, China’s expectation management mechanism has been continuously improved, and the level of expectation management has been steadily rising. However, compared with practical needs, there is still much room for enhancement.

The 2026 government work report proposed to improve expectation management mechanisms and boost social confidence. As China’s economy becomes more market-oriented and internationalized, market expectations and confidence increasingly influence economic operation, making expectation management more important.

Recently, the magazine Qiushi published an article by a commentator titled Continuously Improving Expectation Stabilization Work. The article focuses on expectation management and systematically elaborates on its importance in macroeconomic governance, current challenges, and specific implementation paths.

** Weak Market Expectations Remain Evident**

The article points out that, under the influence of various complex domestic and international factors, the issue of weak market expectations remains prominent:

On one hand, the impact of changes in the external environment has deepened, geopolitical risks continue to rise, protectionism and unilateralism have intensified, leading some enterprises engaged in foreign trade and related companies in the industrial chain to be affected, and investment willingness in production is insufficient.

On the other hand, China’s economy is at a critical stage of shifting growth momentum and transforming development models. Cyclical, structural, and institutional issues are intertwined, with prominent contradictions between strong supply and weak demand domestically. The real estate sector and other industries are undergoing deep adjustments, resulting in difficulties for enterprises to increase profits and residents to increase income. Consumer confidence and private investment vitality are insufficient.

Coupled with some domestic and foreign fallacies that belittle China’s economy, these have misled some producers and consumers, affecting macro-control effectiveness and economic stability.

The article believes that, in the face of the current impact of weak market expectations, greater attention must be paid to expectation management and guidance, striving to achieve a virtuous cycle of stabilizing expectations, boosting confidence, and stabilizing the economy.

The article states that the “14th Five-Year Plan” outline and the 2026 government work report have made important deployments for the current and future period of China’s economic and social development, covering policies related to boosting consumption, expanding investment, increasing income, and stabilizing employment—policies that concern the vital interests of residents and enterprises, releasing significant policy dividends.

All regions and departments should fully, deeply, accurately understand and grasp the decisions and deployments made by the Party Central Committee, combine with actual conditions, adapt measures to local circumstances, and implement the Party’s decisions and deployments without fail. They should strengthen systemic thinking, enhance the consistency and effectiveness of macro policies, and avoid “composition fallacy” or “decomposition fallacy.”

It is crucial to pay close attention to changes in the situation, actively introduce policies conducive to stabilizing growth and expectations, and cautiously implement policies that have contractionary and suppressive effects. Currently, particular emphasis should be placed on the “temperature gap” between macro data and micro perceptions, increasing support policies for struggling enterprises and vulnerable groups, continuously safeguarding and improving people’s livelihoods, and ensuring that the broad masses of people have more tangible gains.

Reaffirming the Stability of Real Estate Market Expectations

Because of its strong relevance to key areas, broad involvement, and high social concern, stabilizing and improving expectations in key sectors is a key lever for expectation management.

In this regard, the article suggests focusing efforts on key areas, using expectation improvements in these sectors to drive overall social expectations upward.

The article points out that insufficient domestic demand is a prominent contradiction faced by China’s current economic operation, especially the shortcoming of weak consumption demand. It calls for in-depth implementation of special actions to boost consumption, multiple measures to promote income growth for urban and rural residents, breaking down barriers that hinder, dare, and want to consume, while also fully tapping into and releasing the potential for effective investment.

It is noteworthy that, following the publication of the article “Improving and Stabilizing Real Estate Market Expectations” in Qiushi in early January, this issue again emphasizes stabilizing real estate market expectations, reaffirming the importance of market expectation stability.

The article especially emphasizes that the real estate industry is an important sector of the national economy and a major source of residents’ wealth. The healthy development of the real estate market concerns the overall economic and social development and the vital interests of the people. It is necessary to accurately grasp new situations and problems in the real estate market and adopt more powerful and precise measures to continuously stabilize the real estate market.

Additionally, the capital market is an important platform for expanding residents’ property income channels and allowing the people to share the fruits of economic development. It is necessary to deepen capital market reforms and accelerate the building of a safe, regulated, transparent, open, vibrant, and resilient capital market.

** Strengthening Policy Communication and Enhancing Public Opinion Guidance**

Furthermore, the article recommends strengthening policy communication and interpretation, improving economic publicity and public opinion guidance. It emphasizes external publicity and international opinion guidance, actively shaping the international community’s correct understanding of China.

Under market economy conditions, timely, accurate, comprehensive, objective, clear, and coherent information can effectively reduce expectation deviations and foster a positive social outlook. All regions and departments should respond promptly to social concerns, strengthen policy publicity and interpretation, improve communication mechanisms between the government and various business entities, and ensure the proactive and precise delivery of policies so that the market fully understands and makes good use of them.

At the same time, as China’s economy becomes more deeply integrated with the world, international public opinion increasingly influences the formation of social expectations. In the face of complex international public opinion environments, it is necessary to strengthen external publicity and international opinion guidance, proactively set topics, tell China’s stories well, and timely counter false narratives such as “China’s economy has peaked,” “overcapacity in Chinese industries,” and “foreign capital withdrawing from China,” striving to shape the international community’s correct understanding of China’s development prospects.