China to set up real estate fund worth up to 300 billion yuan to support struggling developers – report

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China is planning to set up a real estate fund that could be worth up to 300 billion yuan ($44.39 billion) to support more than a dozen property developers, including embattled China Evergrande Group, financial information provider REDD reported on Monday, citing sources.

The fund has secured 50 billion yuan from China Construction Bank, and a 30 billion yuan relending facility from the People’s Bank of China (PBOC), the report said, adding the fund can be upsized to between 200 to 300 billion yuan.

Regulators and local governments will select the developers eligible for support from the fund, REDD said, adding that the fund can be used to buy financial products issued by the developers or finance state buyers’ acquisitions of their projects.