Abstract: Over the past two years, the downward correction in China's real estate industry has been reasonable, but it still deviates significantly from the trend. Unlike real estate market crises abroad, the recent corrections in China's market are not due to risks in the residential sector but in the real estate companies. Frequent risk events in these companies in the past year have led to reduced government-led spending and a decline in real estate-related credit, exacerbating a lack of demand. The most urgent issue facing developers is their short-term cash flow shortage. The immediate priority is to stabilize the financing cash flow of these enterprises, requiring both their own efforts and policy support. Policy support should focus on both supply and demand, and it should be implemented as soon as possible.
