Reuters is reporting that the Chinese central bank is looking to provide loans via its re-lending facility to financial firms for the purpose of purchasing property developers' bonds, citing sources familiar with the matter. The specific facility is said to be implemented in the coming weeks and the PBOC is believed to be drafting a 'white list' in identifying good quality, systematically important developers who would receive wider state support.
The news adds to the recent optimism that China isn't going to completely abandon aid for its flailing property sector. That will at least maintain some level of optimism after the rebound in domestic stocks since the start of this month.
