China announces fresh bailouts for property sector
China will offer more bailout loans for its struggling real-estate sector with the first funds expected to become available in the coming days, the housing ministry said on Friday. "In view of the current financing difficulties of some real estate projects", the official newspaper of the housing ministry quoted officials as saying, local governments would "propose a list of real estate projects that can be given financing support". "It is understood that loans will be available for the first batch of project lists before the end of the month," it added. A national body will be set up to oversee the loans, the report said. Officials this week pledged new measures to stimulate the economy, with the People's Bank of China on Wednesday slashing the portion of cash banks must hold in reserve. China has issued several rounds of bailout funds for its property sector, with Beijing saying this week that its banks had provided nearly 10 trillion yuan in loans to real estate last year. Financial woes at major firms such as Evergrande and Country Garden are fuelling buyer mistrust against a backdrop of unfinished housing developments and falling prices. A Hong Kong court will on Monday consider a winding-up petition for Evergrande led by off-shore creditors. And top decision-makers, including President Xi Jinping, pledged at an annual closed-door meeting in December to "actively yet safely defuse risks in the real estate sector" and "meet the reasonable financing needs of real estate enterprises". (AFP)