Chinese property developers rally on reported 200 bn yuan special loan for resuming stalled projects

 

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Shares of Chines property developers are trading higher on news that China plans 200 billion yuan special loans to ensure delivery of stalled property projects. In the A-share market, an index tracking the real estate sector compiled by Wind Information is gaining 1.3% as of 2:51 pm local time, making it one of the best-performing sectors and compared to 0.5% loss for the benchmark Shanghai Composite Index.

China has been planning to provide support to the stalled constructions of residential property projects by offering special loans to developers via policy banks. Chinese news outlet Caixin reported on Monday that the special loans with an initial scale of up to 200 billion yuan will be issued by China Development Bank and Agricultural Development Bank of China and added to the existing loan quotas under the guidance of PBOC, with the Export–Import Bank of China potentially joining in at a latter stage of the scheme. Read more …

Hong Kong property developer New World Development plans to invest 10 billion yuan in land in top-tier cities in mainland China next year, calling the end of China’s property market crash. Read more …