China will provide special loans through policy banks to ensure that housing projects are delivered to buyers. There are yet more signs of renewed public support for a property developer struggling with the debt crisis and slowing home sales.
A statement issued by the Ministry of Housing, Urban and Rural Development, the Ministry of Finance and the People’s Bank of China (PBOC) said the special loans would be limited to projects that are facing difficulties in handing over. The state-run Xinhua News Agency reported on the 19th.
The move signals that authorities are stepping up financial support for the struggling real estate industry. In China last month, a movement to boycott the repayment of mortgages spread rapidly because the houses purchased with loans were unfinished.
Chinese real estate companies find it more difficult to raise funds – even if cheap money overflows
A prolonged downturn in the real estate industry has weighed heavily on China’s economic growth. The country’s gross domestic product (GDP) growth rate in the second quarter (April-June) was the lowest since January-March 2020 (first quarter) when the new coronavirus infection first broke out in Wuhan, Hubei Province. I became scared. Economists say the economy might grow 4% or less this year as a whole.
China economic outlook cuts to 3.5% growth this year – Citi, Moody’s
Original title:
news-rsf-original-reference paywall">China to Offer Special Loans to Troubled Property Developers(excerpt)
