China to make changes to property policy in response to economic challenges

China's top leaders pledge to provide more support for the property sector and take stable employment to a strategic target.

The Politburo, the Communist Party's top decision-making body, has decided to "adjust and optimize policies in a timely manner" for the property sector, which has been hit hard by a government crackdown on debt.

The Politburo also decided to "stick largely to a prudent monetary policy and proactive fiscal policy," and to take steps to boost domestic consumption demand and resolve local debt risks.

The meeting, which was chaired by President Xi Jinping, typically sets the tone for China's economic policies for the second half of the year.

The Politburo's pledges come as China's economy faces a number of challenges, including slowing growth and rising unemployment.

Official data last week showed that China's second-quarter gross domestic product grew 6.3% from a year ago, marking a 0.8% growth compared with the first quarter.

The Politburo's pledges were welcomed by investors, who sent Hong Kong and mainland China stock markets higher on Tuesday.

The Hang Seng Index jumped more than 3%, while the CSI 300 index of the largest A-share listings climbed more than 2%.

The Chinese property sector saw some of the strongest percentage gains in Hong Kong, with developer Country Garden rebounding more than 14% from a nine-month low. Longfor Group surged more than 21% from a seven-week low, while China Overseas Land climbed more than 11% and China Vanke gained nearly 9%.

The Politburo's pledges are seen as a sign that the government is willing to provide more support for the economy, but analysts say that it is not clear how much additional stimulus will be needed.