China could turn to mortgage subsidies to revive its housing market, Morgan Stanley said, estimating that Beijing may need to spend about 400 billion yuan ($57 billion) a year to lift battered consumer confidence.
Authorities may take a gradual and flexible approach to fiscal stimulus in 2026, Robin Xing, the bank’s chief China economist, said on Tuesday. Mortgage subsidies are one option that could be rolled out following policy debate and further contraction in the property market earlier in the year, he added.
