China's State-Owned Enterprises to Rescue Property Market
China is preparing for its state-owned companies to purchase unsold homes from struggling property developers. The move, aimed at tackling the housing surplus, will involve major state enterprises and asset management firms, according to Bloomberg News.
In a strategic move to address the surplus in the housing market, China is ready to deploy its central government-owned companies. This initiative aims to purchase unsold properties from financially troubled developers, Bloomberg News reported on Thursday.
The plan, orchestrated by Chinese regulators, involves enlisting some of the country's largest state-owned enterprises. These include prominent bad debt managers such as China Cinda Asset Management, which are being called upon to assist in mitigating the housing glut, sources familiar with the discussions revealed.
This approach is seen as a crucial intervention to stabilize the real estate sector, which has been grappling with a significant number of unsold housing units, potentially averting further economic repercussions.
(With inputs from agencies.)
Google News