Direct govt interventions is good news, but more steps needed, analysts say
Lifting buyer confidence key for reviving crisishit property sector
Government support measures don39;t go far enough to restore demand

HONG KONGNEW YORK, Nov 17 Reuters China39;s direct interventions to ease a cash crunch for crisishit property developers are a step in the right direction, but analysts say these actions must be complemented by stronger fiscal and monetary policies to shore up demand in the sector.

The extended slump in property sales, investment, and home prices last month has piled more pressure on authorities to step up efforts to prevent contagion across the broader financial sector.

China39;s economy has struggled to get back on solid footing despite the lifting of strict COVID curbs late last year, largely because the property sector has stumbled from one crisis to another in a major blow to consumer and investor confidence.

Rescuing select developers will not be enough in itself to cushion the economic impact of the downturn, analysts say, arguing that Beijing should consider supplementing it with other steps, including boosting fiscal spending and further loosening of monetary policy.

Beijing needs to pull multiple levers at the same time to address the vulnerabilities in the financial system, local government financing, as well as consumer sentiment, said Edward AlHussainy, head of emerging market fixed income research at Columbia Threadneedle, which owns Country…