China unveils ‘historic' rescue for crisis-hit property sector as home prices slump again

China has implemented measures to support its property sector, which is weighing down economic growth. Local governments are being asked to buy unsold homes from struggling developers and relax rules on purchases. The plan includes converting these properties into affordable social housing. The People’s Bank of China will provide loans to fund these purchases, potentially leading to $69 billion worth of credit. The move has bolstered China stocks and been described as a significant moment for the real estate sector. The property downturn worsened in April, with property investment declining and new home prices falling. China’s central government has urged local governments to buy back unused land from developers to assist property companies. The People’s Bank of China has also made additional moves to support the housing market by allowing banks to set their own mortgage rates and reducing down-payment ratios for buyers.