China Pumps Half a Trillion Dollars into Beleaguered Property Sector
Chinese property shares tanked on Thursday, after measures announced by officials to bolster the flagging real estate market were deemed by investors and analysts as insufficient. Despite the significant investment, concerns about oversupply and financial risks persist in the sector.
The recent stimulus package included cuts to mortgage rates and reduced down payments for second-home buyers, aiming to boost liquidity and stimulate consumer spending. However, the market’s response has been mixed, indicating ongoing challenges in the property market.
Local authorities have also relaxed home purchase restrictions in major cities like Shanghai, Guangzhou, and Shenzhen, further easing ownership curbs to encourage homebuying and address the issue of unsold homes.
