China's Housing Rescue to Fall Short of Solving Crisis: Analysts

China: The downturn in China's new house sales has intensified in recent months, as more households opt to purchase properties in the secondary market. This trend has led to a surge in the inventory of unsold homes and vacant land, reaching levels unseen in years. Consequently, new construction has slowed, posing a threat of increased defaults by developers, including major state-owned enterprises.

The support package unveiled by the People’s Bank of China includes a 300-billion-yuan ($42 billion) facility, intended to provide bank loans to state-owned enterprises tasked with purchasing unsold housing inventory.

Economists have expressed apprehension regarding the package's limited size relative to the volume of unsold housing stock and the potential for incomplete implementation.

Source: Bloomberg