Official announcements from the Chinese government or financial news sources

China Considers $546 Billion Special-Purpose Bonds for Local Governments to Buy Unsold Homes

Aug 20, 2024, 08:15 AM

China is considering a new funding strategy to address its struggling housing market by allowing local governments to issue special-purpose bonds to purchase unsold homes. This move comes after previous rescue packages failed to stabilize the market. According to sources familiar with the matter, more than half of the $546 billion special bond quota has already been utilized. The plan aims to provide local governments with a financial mechanism to support the housing sector, which has seen a rapid decline in new-home prices due to relaxed curbs.