In an effort to revive its struggling property sector, Beijing has announced a comprehensive rescue package. The plan includes local governments buying up unsold apartments and converting them into affordable housing. A 300-billion-yuan ($42.25 billion) re-lending facility will be established to support government-subsidized housing projects, with local state-owned enterprises encouraged to use the funds to purchase reasonably priced commercial homes that have completed construction. Vice-Premier He Lifeng has called on cities to buy back residential land and unsold homes to aid distressed developers. The policy also involves relaxing mortgage rules, reducing down payment requirements, and lowering mortgage rates. This practice has been in trial run in cities such as Shanghai and Chengdu. Despite these measures, questions remain about the scale and financing of the plan, and concerns persist about the potential for sparking a new housing bubble. The moves will further squeeze margins of state lenders.
Commentary: Beijing is opening the door to a real estate bazooka. But only a few developers will benefit. https://t.co/sEKw1XP7PG
THREAD: Is China finally getting serious about reviving its struggling property market? Economic pain visible in empty high rises across country. And the contribution of real estate to the economy could drop to 16%, down from one-quarter. https://t.co/BXDPTM60fx
🇨🇳 #China Attempts to End #Property Crisis With Broad Rescue Package - Bloomberg https://t.co/vxIgD969k8 https://t.co/RK2V37JVL8
It is difficult to assess just how bad things have got with China’s property crisis. Only in rare instances, such as Vanke’s collapse, do outsiders get a glimpse at the carnage https://t.co/T6brY98v3f 👇
China’s rush to prop up housing sector aims to boost confidence ahead of third plenum: analysts https://t.co/xHj2u0Q48q
Heard on the Street: Beijing might finally tackle China’s broken housing market with a huge outlay of cash, but investors should proceed with caution https://t.co/JXML7ZihXU https://t.co/JXML7ZihXU
"More than 3yrs after #China placed strict restrictions on developer debt, real estate cos incl state-backed Vanke are on the brink. Collectively they’ve defaulted on $124B of dollar debt & unsold housing inventory is hovering at an 8yr high" https://t.co/n3ISBrIZ8D
"Disguised zero down payments, which are officially banned in #China, have become a growing trend in some cities as developers of new homes & owners of pre-owned homes are desperate to sell in a sluggish market" https://t.co/qfeIWepqL0
Vanke, one of China’s biggest property firms, is flogging its assets to pay its mounting debts. The company’s struggles are another sign of the worsening situation in country’s property industry https://t.co/GzBVxngiGk 👇
Too Big or Not Enough? China Housing Bailout Treads a Fine Line Beijing will try to provide enough support to absorb unsold apartments while not sparking a new bubble - WSJ
You've heard that China has lots of unsold homes, but how many are we talking about? About as many as every single home in California and New York combined. 🤯 Now China's government wants to soak up that supply. It could flop or backfire says @jackycwong https://t.co/i6pXRuDAbc
"Beijing has correctly identified the housing glut as the central problem in the current property mess…Threading the needle between providing enough support and too much won’t be a simple task." @jackycwong https://t.co/1TVrxnxHPh
China is getting serious about a housing rescue, unveiling a plan to clear a backlog of unsold homes—but questions remain over scale and financing @wsj_douglasj @RebeccaYFeng @ByXiaoXiao @TByGraceZhu @raffaelehuang @ivy_jiahuihuang https://t.co/syaW2hp1Wa https://t.co/syaW2hp1Wa
China Unveils A Housing Market Bailout: Here's What's In It, And Why It Is Still Not Enough https://t.co/xN6D9vIshz
Beijing announced its most forceful attempt yet to rescue China’s property market, relaxing mortgage rules and urging local governments to buy unsold homes: Here’s your Evening Briefing https://t.co/OsVj40c6wW
China moves to revive stricken property sector https://t.co/jkfF4NO57z
China stocks rallying higher today after the country's central bank introduced policies to stop losses in the property market. @LongviewG's Dewardric McNeal is doubtful it's enough, but says the policy signals a positive. https://t.co/xZH8GaueIj
"China began lowering the nationwide floor of mortgage rates in 2022 & allowed localities that suffered most declines to set their own min rates..moves will further squeeze margins of state lenders..downturn has already thinned NIMs & pushed up bad loans" https://t.co/CufPja24Ax
🇨🇳 China buys housing for the people. The Central Bank of China will use $42 billion to buy back unsold new buildings, which will then be converted into affordable housing. They decided to cancel the lower limit on mortgage rates, and the amount of the down payment was reduced… https://t.co/2s6xF9rMDl
This practice has been in trial run for well over a year now in cities that are better off such as Shanghai/Chengdu etc. Local government took over unsold homes and turned them into affordable renting units. But not sure how the already bankrupt ones gonna do。 https://t.co/oxqHIjfhAU
But where are local governments going to get the money from? Will banks lend to them? Chinese Vice-Premier He Lifeng calls on cities to buy back residential land, unsold homes to aid distressed developers https://t.co/DCRsqUHa7s
China will establish a 300-billion-yuan ($42.25 billion) re-lending facility to support the gov-subsidized housing project. Local state-owned enterprises are encouraged to use the funds to buy reasonably priced commercial homes that have completed construction. https://t.co/k9j9n6kPv2
#Live: China Property Crisis: Beijing Pushes Rescue Package! #Vantage with @palkisu https://t.co/Ybbj3d9uRR
Beijing announces plan to clear backlog of unsold homes -- confirming @WSJ reporting in Feb https://t.co/fucaLtsCMD -- but questions remain over scale and financing @wsj_douglasj @RebeccaYFeng https://t.co/0m5NcLFrMY via @WSJ
"Regulators are considering plans for unsold homes to be bought by the govt & converted into affordable housing...Proposal is still in discussion...Key to such a plan would lie in who could provide the funds..." The Who is always trickier than the What https://t.co/xC2KeakZ1O
In a bid to revive its ailing property sector, Beijing said that local governments would buy up some unsold apartments while also promising forceful efforts to deliver unfinished homes. Read more here: https://t.co/DRgyue8rV4 https://t.co/2DXCAG7E92
In a bid to revive its ailing property sector, Beijing said that local governments would buy up some unsold apartments while also promising forceful efforts to deliver unfinished homes https://t.co/7c5KdfmLSP https://t.co/iJUFKeRcwL