China Seen Expanding Mortgage Bonds to Revive Housing

China is poised to expand mortgage bonds to lift its slumping real estate market that accounts for a third of the economy.

Officials will likely allow banks to sell commercial mortgage-backed notes for the first time by the end of the year after reviving securities tied to home loans in 2014, according to China Merchants Securities Co. and China Chengxin International Credit Rating Co. The offerings, which help banks boost mortgage lending by freeing space on balance sheets, will grow “substantially” this year, China Credit Rating Co. said.