China pours billions into crisis-hit property market

China has been facing a property crisis since 2021, and the Chinese authorities have now taken significant steps to address the issue. These measures include reducing the amount of money needed for a home deposit and encouraging local governments to buy unsold properties. This is important because the property market has been a key driver of growth for China's economy. The People's Bank of China has announced a 300 billion yuan facility to support affordable housing, which will help state-owned enterprises purchase unsold homes. Additionally, the central bank has eliminated the minimum mortgage rate and lowered the minimum down payment for first-home buyers from 20% to 15%. The deposit for second homes has also been reduced from 30% to 25%. Recent data revealed a 0. 6% month-on-month decline in new home prices, marking the sharpest drop since November 2014. Furthermore, struggling Chinese developer Country Garden had a hearing in a Hong Kong court regarding potential liquidation, which has been adjourned to June 11th. The property developers in China have been under financial strain since 2021, when borrowing restrictions were imposed, leading to defaults on debts by several large companies. In January, Evergrande, the world's most indebted property developer, was ordered to be liquidated by a Hong Kong court.