BEIJING: After prolonged hesitation, China has finally announced steps to address the collapse of its huge property sector by allocating billions of dollars to revive its bankrupt real estate sector by buying back unsold homes. and buying back the waste land that was once its mainstay. Economic Development.
The People's Bank of China has announced that it will set up a 300 billion yuan (about US$42.25 billion) refinancing facility for government-subsidized housing projects.
Tao Ling, deputy governor of the People's Bank of China, told the media last week that local state-owned enterprises are encouraged to use the funds to purchase reasonably priced commercial houses that have completed construction.Ta said these houses would be used to provide affordable housing.
In addition, as part of the government's increased fiscal efforts to support the property sector, commercial banks across the country issued a total of 963. billion yuan (about US$137 billion) in real estate development loans, followed by Billions of yuan were personally released. Loan for housing loan. In the first quarter of the year, the state-run Xinhua news agency reported.
The newly established fund will help developers access financing and encourage the repurchase of "idle" land and the "recovery" fund will enable local state-owned enterprises to purchase unsold homes, after which they can offer affordable housing. Are.Can do. Chinese media report.
In addition to being unusually large, China's property sector accounted for about a quarter of its economy's annual output and was highly interconnected with other parts of the Chinese economy.
Household wealth in China is also highly concentrated in wealth. Systemically important financial institutions had to be rescued to prevent a financial meltdown 16 years ago, but major property developers in China may also be linked to the failure, according to a report by the Hong Kong-based South China Morning Post. The Chinese property sector crisis, considered the most serious blow to the country's massive economy, led to the default of Evergrande Group, the largest property market developer, in 2021.Evergrande reported more than US$300 billion in liabilities. Earlier this year a Hong Kong court ordered the company's liquidation, causing a stir in China and around the world.
Soon the crisis spread like wildfire and Kaisa Group, Country Garden, Fantasia Holdings and many other real estate developers declared bankruptcy after losing millions of unsold and partially developed residential high-rise buildings across the country.
A Hong Kong court decision in January to liquidate Evergrande is unlikely to end China's property debt crisis, analysts say."
The People's Bank of China has announced that it will set up a 300 billion yuan (about US$42.25 billion) refinancing facility for government-subsidized housing projects.
Tao Ling, deputy governor of the People's Bank of China, told the media last week that local state-owned enterprises are encouraged to use the funds to purchase reasonably priced commercial houses that have completed construction.Ta said these houses would be used to provide affordable housing.
In addition, as part of the government's increased fiscal efforts to support the property sector, commercial banks across the country issued a total of 963. billion yuan (about US$137 billion) in real estate development loans, followed by Billions of yuan were personally released. Loan for housing loan. In the first quarter of the year, the state-run Xinhua news agency reported.
The newly established fund will help developers access financing and encourage the repurchase of "idle" land and the "recovery" fund will enable local state-owned enterprises to purchase unsold homes, after which they can offer affordable housing. Are.Can do. Chinese media report.
In addition to being unusually large, China's property sector accounted for about a quarter of its economy's annual output and was highly interconnected with other parts of the Chinese economy.
Household wealth in China is also highly concentrated in wealth. Systemically important financial institutions had to be rescued to prevent a financial meltdown 16 years ago, but major property developers in China may also be linked to the failure, according to a report by the Hong Kong-based South China Morning Post. The Chinese property sector crisis, considered the most serious blow to the country's massive economy, led to the default of Evergrande Group, the largest property market developer, in 2021.Evergrande reported more than US$300 billion in liabilities. Earlier this year a Hong Kong court ordered the company's liquidation, causing a stir in China and around the world.
Soon the crisis spread like wildfire and Kaisa Group, Country Garden, Fantasia Holdings and many other real estate developers declared bankruptcy after losing millions of unsold and partially developed residential high-rise buildings across the country.
A Hong Kong court decision in January to liquidate Evergrande is unlikely to end China's property debt crisis, analysts say."