China's housing market rescue plan

The Chinese government has reportedly prepared a 16-item rescue plan to resolve the problems in the housing market, which has recently been closely followed by global markets. China has prepared a 16-step rescue plan to save the housing market, which is experiencing a deep recession and liquidity problems. Sources who spoke to Bloomberg said that the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission sent a notice to financial institutions on Friday preparing plans to ensure the “stable and healthy development” of the real estate sector. According to the sources, unlike previous supportive steps, this package consists of comprehensive measures, ranging from the liquidity crisis faced by housing producers to relaxing down payment requirements for home buyers. Under the rescue plan, housing companies’ outstanding bank loans and debts due in the next six months can be extended for one year, and the repayment of their bonds can be postponed or exchanged through negotiations. The plan, announced after Friday's 20-item package aimed at easing the economic and social burden of virus restrictions, was seen as another sign that Xi Jinping is shifting his focus to saving the economy.