Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.
China to issue $29 billion of special loans to curb the mortgage crisis and finish housing projects
Posted on September 5, 2022 |
- Bejing will offer 200 billion yuan ($29.3 billion) in special loans to finish delayed housing projects in China.
- Hundreds of thousands of homeowners paid in advance and took out loans on properties but developers failed to complete properties, which led to a mortgage crisis.
- The mortgage crisis and sanctions decreased the prices of stocks and bonds of the local property firms and in 86 cities, sanctions were effective.
- In 2022, Bejing reduced its mortgage lending rate for the second time as the People’s Bank of China (PBOC) struggled to curb the liquidity problem in the real-estate sector. The PBOC cut the 5-year lending rate to 4.3% from 4.45%.
- The rate cut will decrease borrowing costs on new mortgages in China and restore the country’s troubled real estate sector.