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Caixin

Bailouts multiply as pressure mounts to stabilize China's housing market

Rescues fuel debate on saving projects or developers -- and on moral hazard

Apartment buildings under construction in Beijing. The Politburo has told local governments they are responsible for ensuring the "timely delivery" of homes under construction that have already been paid for, following a mortgage boycott at hundreds of unfinished developments as thousands of angry homeowners protested about repaying loans on unfinished properties.    © Reuters

Efforts to halt the slump in China's housing market are gathering pace as local governments, banks, state-owned enterprises (SOEs), asset management companies and shareholders pump money into unfinished projects and cash-strapped developers.

A meeting of the Politburo on July 28 called for action to "stabilize the real estate market" and the use of "city-specific policies." It also told local governments they would be responsible for ensuring the "timely delivery" of homes under construction that have already been paid for.

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