BEIJING: China is considering a plan to involve central government-owned firms in purchasing unsold homes from struggling property developers.
The initiative aims to reduce the housing oversupply by engaging major state-owned enterprises and bad debt managers like China Cinda Asset Management.
A 300 billion yuan ($41.83 billion) fund, initially set up for affordable housing, will be repurposed to support these purchases.
Last year, the central bank introduced a relending facility to help local state firms buy completed but unsold homes at reasonable prices.
The property sector crisis began in 2021 after a regulatory crackdown on developer debt led to widespread liquidity issues.
Unfinished projects and declining buyer confidence have exacerbated the market downturn.
The State Council Information Office and China Cinda Asset Management have not yet commented on the reported plan.
The move highlights Beijing’s efforts to stabilise the struggling real estate sector. – Reuters