HONG KONG (Reuters) – China plans to set up a real estate fund that could be worth up to 300 billion yuan ($44.39 billion) to support more than a dozen property developers, including the China Evergrande Group in difficulty, reported the financial information provider REDD. Monday, citing sources.
The fund has secured 50 billion yuan from the China Construction Bank and a 30 billion yuan loan facility from the People’s Bank of China (PBOC), according to the report, adding that the fund can be increased to 200 billion to 300 billion. yuan.
Regulators and local governments will select developers eligible for support from the fund, REDD said, adding that the fund can be used to buy financial products issued by developers or finance acquisitions of their projects by public buyers.
Beijing is also considering a national policy of issuing special bonds for slum upgrading, according to the report.
($1 = 6.7576 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Shri Navaratnam)