China’s Latest Challenge Is Engineering a Soft Landing for a Sputtering Economy

HONG KONG—Chinese leaders are trying to reverse a sharp growth slowdown without the need of abandoning procedures that activated much of the weak spot to start with—a tough task that could examination Beijing’s skill to engineer a comfortable landing for the world’s No. 2 financial state.

In current months, China has unveiled a handful of plan-easing steps to avert a downward spiral in the housing market and rekindle overall growth, which slowed drastically in the third quarter. The hottest steps contain generating home loans extra effortlessly available and an unexpected cut this week in the amount of money of dollars banking companies are required to keep, which could decreased funding expenditures for firms.