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Reuters
5 days ago
- Business
- Reuters
China plans to ask central government-run firms to buy unsold homes, Bloomberg News reports
Aug 14 (Reuters) - China is preparing to mobilise central government-owned companies in Beijing to buy unsold homes from troubled property developers, Bloomberg News reported on Thursday. Regulators are planning to ask major state-owned enterprises and bad debt managers, including China Cinda Asset Management ( opens new tab, to help reduce the oversupply of housing, the report said, citing people familiar with the matter. The firms will be allowed to draw from a 300 billion yuan ($41.83 billion) fund that the central bank had originally designated for an older initiative, according to the report. Last year, the central bank set up a relending loan facility for affordable housing to encourage local state-owned enterprises, or SOEs, to buy up unsold completed homes. The relending facility was aimed at helping them make these purchases at "reasonable prices." China's property sector's troubles trace back to 2021 when a regulatory crackdown on developer debt triggered a liquidity crisis, leaving projects unfinished and buyers wary. The State Council Information Office, which handles media queries on behalf of the central government, and China Cinda Asset Management did not immediately respond to Reuters requests for comment. ($1 = 7.1724 Chinese yuan renminbi)
Bloomberg
5 days ago
- Business
- Bloomberg
China Mulls Asking Firms Run by Central Government to Buy Homes
China is preparing to mobilize companies owned by the central government in Beijing to purchase unsold homes from distressed property developers, following the limited success of a previous initiative that relied on local governments, according to people familiar with the matter. Regulators are planning to ask some of the biggest state-owned enterprises and bad debt managers including China Cinda Asset Management Co. to help clear the housing glut, said the people, asking not to be identified discussing a private matter. The firms will be allowed to tap 300 billion yuan ($41.8 billion) of funding that the central bank earmarked for the program last year, one of the people said.
