Cheap credit on offer to shore up property sector - Central bank helps fund purchase of unsold homes

Bogged down: A residential complex in Beijing. Some observers think the PBoC will double its aid package to revive the property sector before the end of this year. — AFP

BEIJING: The People’s Bank of China (PBoC) is the key actor in Beijing’s intensifying effort to shore up the housing market, pumping in cash through a variety of programmes with more funds available if they’re needed.

The PBoC’s latest tool is likely the most powerful so far, making 300 billion yuan of cheap credit available for banks to fund local-government purchases of unsold homes. The goal is to chip away at the country’s excess housing stock and ease cashflow strains for developers.