China is considering a plan for local governments nationwide to buy millions of unsold homes, Bloomberg News said on Wednesday, after a meeting of leaders of the ruling Communist Party called for efforts to clear mounting housing inventory, reports Reuters. The State Council is gathering feedback on the preliminary plan from various provinces and government bodies, the report added, citing people familiar with the matter.
China’s blue-chip CSI 300 real estate index climbed as much as 6% at one point following the report, before paring gains, while the yuan firmed.
China’s property sector has been in a deep slump for years, hit by a debt crisis among developers. Since 2022, waves of policy measures have failed to turn around the sector that represents around a fifth of the economy and remains a major drag on consumer spending and confidence.