Thomas Hale and Joe Leahy of the Financial Times report that Beijing has unlocked funding to buy up unsold housing, but much more is needed for the right-stricken sector, analysts say. They write:
With the announcement of a Rmb300bn ($41bn) fund to support government purchases of unsold housing, the Chinese government last week appeared to finally unleash major firepower to tackle a three-year slowdown in the country’s real estate market. But while the new measures may mark a turning point in a crisis that has weighed heavily on China’s economy, analysts and economists said the hundreds of billions of renminbi was nowhere near enough. “This is a drop in the ocean given the scale of unsold stock,” said Harry Murphy Cruise, an economist at Moody’s Analytics.
But while the new measures may mark a turning point in a crisis that has weighed heavily on China’s economy, analysts and economists said the hundreds of billions of renminbi was nowhere near enough. “This is a drop in the ocean given the scale of unsold stock,” said Harry Murphy Cruise, an economist at Moody’s Analytics.
“This is a drop in the ocean given the scale of unsold stock,” said Harry Murphy Cruise, an economist at Moody’s Analytics. […]
“We need to recognise the government is not going to be able to buy up all the inventory,” said Shan. “They’re going to have to make an effort to selectively buy in certain cities and design the programme to achieve their policy objectives. Whatever they’re doing right now is hugely insufficient.”
Read more here.
