Expanding Property Income Key To Consumption Boost

Increasing residents’ property income is necessary to restore and expand consumption, the state-owned Economic Daily said in a commentary. China has more than 200 million A-share investors and 700 fund investors, but the low valuation of equity assets in the current capital market limits their investment gain. The property income of Chinese residents accounts for less than 5% of GDP, much lower than developed countries in Europe and the U.S, limiting their purchasing power. Authorities should continuously relax the proportion and scope of medium- and long-term funds entering the market, improving the quality of listed companies and thier trading environment, the newspaper said.