China’s urbanisation push cushions its growth slowdown

Significance The plan aims to boost the proportion of urban household residency holders from just over 66% of the population in 2023 to around 70% by 2028, equivalent to roughly 52 million new urban residents. The State Council announced new fiscal resources, including unspecified central government construction funds, to support cities in settling more urban residents. Impacts Consumer-facing companies will profit from growing urban consumer bases creating new demand for their products. The property market will benefit from urbanisation as new residents help purchase unsold housing stock. Spending on supporting infrastructure for new residents will rise, but there is a risk of cities with limited budgets being overwhelmed. Coastal trading areas such as Shanghai, Jiangsu and Guangdong will attract the most migrants and have the highest urbanisation rates. Smaller cities in inland regions will receive proportionately more policy support to settle urban residents.