China Shores Up Property Sector, Signals More Spending Is Coming
- Finance officials announce steps to support real estate sector
- Lan says government has more room to borrow, raise deficit
Residential buildings under construction in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China promised new measures to support the property sector and hinted at greater government borrowing to shore up the economy, as authorities seek to put a floor under the country’s growth slowdown.
Local governments will be allowed to use special bonds to buy unsold homes, Finance Minister Lan Fo’an and his deputies announced at a briefing Saturday, without giving an amount. Lan hinted at room for issuing more sovereign bonds and vowed to relieve the debt burden of local governments, signaling a possible rare revision to the budget that could come in the next few weeks.