Real Estate
China Attempts to End Property Crisis With Broad Rescue Package
- Beijing removes floor on mortgages rates, lowers downpayment
- PBOC readies $42 billion of funding to buy unsold homes
Xi Jinping’s government announced its most forceful attempt yet to rescue the beleaguered Chinese property market, relaxing mortgage rules and urging local governments to buy unsold homes as authorities become increasingly concerned about the sector’s drag on economic growth.
The support package also includes lower down-payment requirements for homebuyers and 300 billion ($42 billion) of central bank funding to help government-backed firms buy excess inventory from developers. Those properties would then be converted into affordable housing.