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China’s CCB to Set Up $4.2 Billion Fund to Buy Properties

  • Fund will purchase existing assets from real estate firms
  • Government has ramped up efforts to rein in property crisis

China Construction Bank Corp. will set up a 30 billion yuan ($4.2 billion) fund to buy properties from developers, as policy makers beef up efforts to contain a real estate crisis that’s weighing on the economy.

The fund will “invest in existing assets” of real estate companies and renovate the properties into rental housing, the lender said in a statement to the Shanghai stock exchange Friday. The fund lasts for 10 years, with a possible extension, according to CCB, which is one of China’s big four state-owned lenders.