39% of our retail client accounts were profitable in the last quarter^*. Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You should not trade with money you cannot afford to lose.

China’s Economic Struggles: Balancing Fiscal Policy and Property Market Recovery

Written by Russell Shor 9 October 2024, 8:43 am

China is grappling with significant economic challenges, particularly concerning fiscal policies and the state of its property market. A press conference set for Saturday is anticipated to unveil plans aimed at fostering sustainable growth. While recent efforts have led to a notable 30% increase in the CSI 300 index over the past month, analysts warn that a more substantial fiscal injection—potentially around 3 trillion yuan ($425 billion)—is crucial for a durable recovery.

In the property sector, Golden Week produced mixed results. Home sales surged in Beijing, yet other major cities like Shanghai and Shenzhen experienced steep declines. Despite government measures to reduce mortgage rates and lower down-payment requirements, these initiatives have had little impact in reversing the overall slump.

As many developers continue to face financial difficulties and housing inventories accumulate, experts emphasise the need for more decisive intervention. Without stronger actions to restore confidence, the ongoing crisis in the property sector is likely to impede the broader economic recovery.

Russell Shor

Senior Market Strategist

Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.

Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.

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* The percentage of our retail client accounts that were profitable in each of the previous most recent quarters was: Quarter 4, 2025: 41% | Quarter 3, 2025: 41% | Quarter 2, 2025: 34%. These figures are provided for transparency purposes only and do not constitute an indication of future performance or results.