SHANGHAI/HONG KONG -- China's central bank on Friday said it will set up a new lending program to encourage local governments to "digest" excess housing supply, as the world's second-largest economy grapples with an accelerating decline in home prices.
China debt crunch
China unveils $41bn lending program to 'digest' unsold properties
Mortgage rates lowered as vice premier vows to fight risk of 'unfinished' projects
Unfinished residential buildings developed by China Evergrande Group stand in the outskirts of Shijiazhuang, Hebei province, on Feb. 1. © Reuters
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