China allots billions of dollars to support its property industry, which is in turmoil

The world's second-largest economy was severely hampered by the real estate crisis, which caused its GDP to decline to around 5% and continued to slow down.

Evergrande has disclosed liabilities totaling more than $300 billion USD.

After much delay, China has finally announced plans to deal with the almost complete collapse of its enormous real estate market. Billions of dollars will be used to repurchase idle land and buy back unsold homes in an attempt to revive the once-bankrupt real estate industry, which was China's main driver of economic growth.

A 300 billion yuan (about USD 42.25 billion) loan facility for the government-subsidized housing project has been announced by the People's Bank of China. Tao Ling, deputy governor of the People's Bank of China, told the media last week that local state-owned businesses are motivated to utilize the money to purchase commercial properties that have been finished construction at a reasonable price.

Tao said, "Affordable housing will then be provided by these homes." Tao Ling, deputy governor of the People's Bank of China, told the media last week that local state-owned businesses are motivated to utilize the money to purchase commercial properties that have been finished construction at a reasonable price. Tao said, "Affordable housing will then be provided by these homes."

According to state-run Xinhua news agency, commercial banks nationwide issued billions of yuan in loans for individual housing in the first quarter of the year, after issuing a total of 963.6 billion yuan (roughly USD 137 billion) in real estate development loans as part of the government's increased financial initiatives to support the property sector. According to Chinese media sources, the newly established fund will assist developers in obtaining financing and would promote the buyback of vacant property. The monies that are lent out will also allow state-owned firms in the area to acquire unsold dwellings that they may then sell as cheap housing.

According to Chinese media sources, the newly established fund will assist developers in obtaining financing and would promote the buyback of vacant property. The monies that are lent out will also allow state-owned firms in the area to acquire unsold dwellings that they may then sell as cheap housing. In addition to being exceptionally vast, China's real estate market contributed around 25% of the country's yearly GDP and had strong ties to other areas of the country's economy. China's family wealth is likewise heavily centered on real estate.

According to a story in the South China Morning Post of Hong Kong, prominent property developers in China could be too intertwined to fail, much as systemically significant banking firms had to be rescued to avert a financial crisis sixteen years ago.

China's family wealth is likewise heavily centered on real estate. According to a story in the South China Morning Post of Hong Kong, prominent property developers in China could be too intertwined to fail, much as systemically significant banking firms had to be rescued to avert a financial crisis sixteen years ago.

The largest property market developer, Evergrande Group, failed in 2021 as a result of the Chinese real estate crisis, which is thought to be the heaviest blow to the nation's enormous economy.

Liabilities over USD 300 billion have been declared by Evergrande. The company's liquidation was ordered by a Hong Kong court earlier this year, causing a stir in China and beyond. Liabilities over USD 300 billion have been declared by Evergrande. The company's liquidation was ordered by a Hong Kong court earlier this year, causing a stir in China and beyond.

Following millions of unsold and partially constructed residential high-rises around the nation, additional real estate developers including Kaisa Group, Country Garden, Fantasia Holdings, and a host of others declared bankruptcy as a result of the problem quickly spreading like wildfire. Analysts predict that China's property debt issue won't stop with the Hong Kong court's January order to liquidate Evergrande. Analysts predict that China's property debt issue won't stop with the Hong Kong court's January order to liquidate Evergrande.

Last week, China took action to address the property problem, which was severely hindering the growth of the world's second biggest economy and bringing down its GDP to about 5% due to a persistent downturn. In addition to the USD 42.25 billion fund, the government declared plans to lower minimum down payment requirements, establish an affordable housing loan institution, and guarantee the delivery of unfinished houses as ways to stimulate the real estate industry. In addition to the USD 42.25 billion fund, the government declared plans to lower minimum down payment requirements, establish an affordable housing loan institution, and guarantee the delivery of unfinished houses as ways to stimulate the real estate industry.

The changes included lowering the minimum down payment requirements for commercial housing mortgages for people to 15% for first-time home buyers and 25% for second-time buyers. "The property market will benefit greatly from the lowest down payment requirement in history," said Yan Yuejin, research director at E-house China R&D Institute, in an interview with Xinhua. "The property market will benefit greatly from the lowest down payment requirement in history," said Yan Yuejin, research director at E-house China R&D Institute, in an interview with Xinhua.