Chinese Gov’t Asks Top Banks to Provide Over US$84 billion to Rescue Real Estate Sector

China’s financial regulators have asked its six largest banks to provide 600 billion yuan (US$84.32 billion) of financial support in any form including mortgages, loans to developers, and purchases of their bonds, to help recover the real estate sector.

Bloomberg News reported on 30 September that this is the latest scheme after a series of actions implemented by the Chinese government to help rescue the real estate sector from overindebted developers.

According to the report, those banks include Industrial & Commercial Bank of China Ltd., China Construction Bank Corp, PBOC, CBIRC, ICBC, and China Construction Bank.

China’s investment property investment dropped by 7.4% y-o-y in the first eight months of 2022, a further decrease of 1% in the first seven months. (Read more)

According to the National Bureau of Statistics (NBS) report, the total property investment in this period was 9.08 trillion yuan (US$1.31 trillion).

One of the causes of the real estate downturn in China is the debt crisis of large developers such as Evergrande.

Recently, China Evergrande has vowed to restart construction of all frozen property projects by the end of September, prompting a response to the nationwide mortgage boycott.

Meanwhile, the Chinese government also plans to issue 200 billion yuan (US$29 billion) in special loans to help developers finish their stalled housing projects, according to Caixin. (Read more)

- Video Advertisement -

Related Post

Thai office space vacancy rate rises 26.3%, Yet Thailand’s richest billionaire optimistic about market demand growth

Bangkok’s office vacancy rate in prime Grade A buildings has soared to 26.3%, reflecting a growing oversupply, but Frasers Property Limited, led by Thailand’s wealthiest scion, is betting on the US-China trade feud to drive demand for office and industrial spaces across Southeast Asia, according to bangkokpost on 19 September 2024. With a US$3.6 billion […]

Get Real: Powerful 3D Software Brings The Future of Infrastructure to Life in Just a Few Clicks

 Greg Demchak stood before an enormous LED screen in a dark hotel conference room. With a game controller and a keyboard, he moved his audience through a digital model of Barcelona. The glowing screen showed a bird’s-eye view of the Spanish city’s famed “manzanas,” the octagonal block of buildings designed by the visionary 19th […]

Cambodia Construction Expo 2024 to Showcase Over 2,000 Products and Services on 5-7 December

The Cambodia Construction Expo 2024, a cornerstone event for the nation’s construction industry, is set to take place from 5 to 7 December 2024, promising to be a key driver of industrial growth. Organised by the Cambodia Constructors Association (CCA), the three-day exhibition will feature hundreds of domestic and international companies showcasing over 2,000 products […]

Two Chinese Firms to Expand Investment in Cambodia with New Garment Factories

Fortune Rich Trade Co., Ltd. and Ju Wang Footwear Co., Ltd., two prominent Chinese firms, have announced plans to establish additional garment factories in Cambodia, focusing on producing women’s and children’s clothing for international markets. This significant investment initiative was unveiled during a meeting with PM Hun Manet on 6 November 2024 in Kunming, Yunnan […]

China Construction America Ordered to Pay US$1.6 Billion and Conflict of Political Interests Behind

A New York court has ordered China Construction America Inc. (CCA), a subsidiary of Chinese state-owned China State Construction Engineering, to pay US$1.6 billion to BML Properties, the original owner of the Baha Mar casino resort in the Bahamas, after the contractor was found to have committed “many acts of fraud” during its takeover of […]

Cambodia Constructors Association’s Successful Business Tour at Foshan Trade Conference

The Cambodia Constructors Association (CCA) successfully led a business tour from 18 to 21 October 2024, to the Foshan Building Materials and Sanitary Ware RCEP & Central Asia Fair and Conference in Foshan, Guangdong, China. This event provided an essential platform for Cambodian construction firms to engage with international industry leaders, suppliers, and potential partners, […]