Chinese authorities have presented a large-scale plan to help the real estate sector, providing numerous measures, including the settlement of developers’ problems with liquidity and relaxation of requirements for the first installment on the purchase of real estate, Bloomberg agency writes, citing informed sources. The new measures are another sign indicating that the Chinese government is focusing on economic recovery, the agency notes.

Such a move “could be a game changer, as these are the first large-scale support measures from the central government, as opposed to the previously taken piecemeal steps,” Citigroup (NYSE:C) analysts believe.

The new package of measures is aimed at the sustainable and stable development of the real estate sector, said Sheng Songcheng, former head of statistics and analysis at the People’s Bank of China. Thus, China is expected to provide the real estate sector with a “soft landing,” he notes.

Although the new measures may not be as effective as those taken earlier, they are favorable for restoring confidence in the market, the expert believes. The support of the authorities may allow developers to stabilize operations, in addition, it will ensure that the real estate sector no longer puts pressure on the economy.

At the same time, analysts note that the outlook for the sector and the economy as a whole is likely to depend on how quickly the new support measures can stabilize the confidence of banks, investors and property buyers.

Shares and bonds of Chinese developers jumped on Monday amid the news. For example, securities of Country Garden Holdings Co. Ltd. soared 38%, Country Garden Services Holdings Co. Ltd. – by 20.2%, Longfor Group Holdings Ltd. – by 15.4%.

Chinese authorities last week also unveiled a series of measures to adjust policies to combat the coronavirus, including announcing a reduction in mass testing of people for the coronavirus, as well as the dissolution of “quarantine camps.” On Saturday, authorities said they planned further incremental changes that would make the covid restrictions more focused, but not soft.