Media reports: China plans to inject CNY 1 trillion to support the housing market

The Chinese government reportedly plans to provide CNY 1 trillion ($137 billion) of low-cost funding to the nation’s urban village renovation and affordable housing programs, according to media reports. The plan would mark the authorities’ major effort to halt the current property market turmoil.

The People's Bank of China (PBOC) plans to disburse funds in stages through policy banks. According to the reports, the government is considering options including Pledged Supplemental Lending (PSL) and special loans, which might come into effect as soon as this month.

Industries experts believed that the program is not designed to stimulate growth but to ‘deliver a more balanced long-term development’ by attracting private investment in the sector. 

China is still on a bumpy road to recovery. The latest report from the National Bureau of Statistics (NBS) showed property investment in the first 10 months of 2023 fell 9.3% compared to the previous year while new construction starts slumped 23.2%. Property sales by floor area fell 7.8% year-on-year.