Secondly, there is the issue of funding. While the central government is pushing the policy, the financial burden will largely fall on local governments, many of whom are already grappling with massive debt loads accumulated during the infrastructure boom of the last decade.
The announcement, reported across major state media outlets and tracked closely by global financial markets, signals a transition from a reliance on market-driven corrections to state-led asset management. As the housing slump worsens, filling the skyline with ghost cities of unsold inventory, the government is stepping in to become the buyer of last resort. Secondly, there is the issue of funding
The PBOC is creating a special relending facility—reportedly worth upwards of 500 billion yuan (approximately $70 billion USD initially, with expectations of expansion to $300 billion). Local state-owned enterprises will borrow from policy banks at near-zero interest rates. They will then negotiate with developers to buy completed but unsold apartments at deep discounts —potentially 40% to 60% below peak market prices. As the housing slump worsens, filling the skyline
By using public funds to soak up excess supply, Beijing hopes to put a floor under falling prices. Economists note that this is effectively a "quantitative easing" move for the property market, though the government stops short of calling it a bailout of failed developers. They will then negotiate with developers to buy