China Shores Up Property Sector, Signals More Spending Is Coming
- Finance minister announces measures to support property sector
- Lan says government has more room to borrow, raise deficit
Residential buildings under construction in Shanghai.
Photographer: Qilai Shen/BloombergChina 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 announced at a briefing Saturday, without giving an amount. He 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.
