(Yicai Global) Jan. 27 -- High-quality real estate developers in China will have the chance to expand business this year, according to a number of brokerages.

Property sector risks can be gradually defused in 2022 and high-quality companies will have the opportunity to develop, said Citic Securities, the country’s biggest broker.

Tianfeng Securities said that government policy this year is expected to improve the sector’s long-term transition to sound and healthy development. From the supply side, policy will support high-quality homebuilders, prevent and resolve their cash crises, and accelerate the industry’s transformation, it added.

The Political Bureau of the Chinese Communist Party met on Dec. 6 and made clear that it would promote the building of affordable homes and support the commercial housing market to better meet the reasonable housing needs of buyers and promote the embattled sector’s healthy development.

On the same day, the People's Bank of China said it would cut the reserve requirement ratio, or the amount of funds that banks must have on hand, by 0.5 percentage point on Dec. 15, releasing about CNY1.2 trillion (USD189 billion) of long-term funds.

As it will take time for the looser policy to take effect, cash flow at developers will face pressure, Guosheng Securities said, though it still expects the sector to continue its upward trend.

Many listed builders have been selling assets since the end of last year to resolve liquidity risks. As of yesterday, 16 including China Evergrande Group, Greenland Holdings, and Grandjoy Holdings Group, had sold assets at home and offshore since Nov. 16, Yicai Global calculated.

The majority were high-quality assets, with prices ranging from about CNY41.8 million to CNY8.9 billion (USD6.6 million to USD1.4 billion).

Editors: Xu Wei, Futura Costaglione