Xi Jinping urges 'new model' for China urban development in rare meeting

The country’s prolonged housing downturn is stifling efforts to boost consumer demand and shore up the economy as exports remain at risk from trade tensions with the US.

Chinese President Xi Jinping called for the acceleration of a “new model” for property development, advocating a more measured approach to urban planning and upgrades, while falling short of investor expectations for more aggressive policies.

China will “steadily advance renovation of urban villages and dilapidated houses,” the official Xinhua News Agency reported Tuesday, citing the Central Urban Work Conference held on Monday and Tuesday. The announcement follows a pledge by the government last October to renovate 1 million homes in older, rundown dwellings in large cities.

Ahead of the official readout, there has been growing speculation of a meeting reminiscent of a 2015 campaign that was then used to boost home-buying demand and galvanize domestic investment. That year, China held the Central Urban Work Conference, which was the first of its kind in decades and attended by Xi and top Politburo members.

The country’s prolonged housing downturn is stifling efforts to boost consumer demand and shore up the economy as exports remain at risk from trade tensions with the US. Official data Tuesday showed a weakening home market in June, with new-home prices falling the most in eight months.