China pours billions into crisis-hit property market

China has been facing a property crisis since 2021, and the government has now taken significant steps to address the issue. These measures include reducing the amount of money needed for a deposit when buying a home and encouraging local authorities to purchase unsold properties. The property market has been a key driver of growth for China's economy, and the recent problems have had a major impact. The People's Bank of China has announced a 300 billion yuan facility to support affordable housing, with the aim of helping 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 minimum deposit for second homes has also been reduced from 30% to 25%. New home prices have been falling for ten consecutive months, with a 0. 6% month-on-month decline in April, the sharpest drop since November 2014. Meanwhile, Chinese developer Country Garden faced a potential liquidation hearing in a Hong Kong court, which was adjourned to June 11th. The financial struggles of Chinese property developers began in 2021 when the government implemented measures to restrict borrowing by large real estate companies. As a result, several major property developers have defaulted on their debts, including Evergrande, the world's most indebted property developer, which was ordered to be liquidated by a Hong Kong court in January.