According to Bloomberg‘s own source, China is planning to provide at least 1,000 billion yuan (about 3.3 million billion VND) to rescue the real estate market.
The People’s Bank of China will inject money in stages through policy banks. This amount will be distributed to households for them to borrow buy a house to live in.
This plan is part of a new initiative of Chinese Deputy Prime Minister Ha Lap Phonghit a major turning point representing rescue efforts real estate market of the Government of this country.
Despite many measures that have been introduced since the beginning of the year until now, the market is still sinking into the worst recession in decades weighing on economic growth and consumer confidence.
The additional loan program has a commitment that allows the Bank to The Central Bank provides cheap capital for policy banks as well as commercial banks. From there, these banks will provide capital to developers in charge of project is eligible for support.
Businesses can use this source of money to buy land from local authorities. Households whose old houses are demolished will also receive cash support to buy new houses. This approach will help increase demand for the market.
However, the additional committed loan program is also causing a lot of controversy. This program was first implemented in 2014 to address the real estate market downturn but was ultimately criticized as a factor in inflating the housing bubble in cities.
“
