A piece via Reuters citing financial information provider REDD (who in turn cite unnamed sources).
- China is planning to set up a real estate fund that could be worth up to $44.39 bn
- to support more than a dozen property developers
- fund has secured 50 billion yuan from China Construction Bank and a 30 billion yuan relending facility from the People's Bank of China (PBOC)
- fund can be used to buy financial products issued by the developers or finance state buyers' acquisitions of their projects
Yikes. Its not only China that props up distressed sectors, of course. On the face of it, in the short term, anything to relieve the pressure on China's troubled debt-distressed property sector should be bullish for China proxy trades.
