Chinese authorities have unveiled a sweeping package of measures to support the struggling real estate sector, including calling on local governments across the country to buy unsold homes from struggling developers and relaxing home buying rules.
He Lifeng, vice premier and chief economic official of the CCP, said municipal governments should buy back unsold houses and turn them into affordable social housing. These actions are seen as key solutions to overcome the crisis in China’s real estate sector.
The People’s Bank of China announced a 300 billion yuan ($41.5 billion) loan program to finance government purchases of unsold homes. In addition, the central bank will encourage commercial banks to support local state-owned enterprises in purchasing unsold houses.
