China plans to provide at least $137 billion of low-cost financing to the nation’s urban village renovation and affordable housing programs in its latest effort to shore up the struggling property market
The People s Bank of China would inject funds in phases through policy banks with the money ultimately trickling down to households for home purchases, the people said, asking not to be identified discussing a private matter. Officials are considering options including the so-called Pledged Supplemental Lending (PSL) and special loans, the people said, adding that the government may take the first step as soon as this month.
Finance and investment experts have prioritized preserving Hong Kong s status as a financial hub and supporting the channeling of substantial funds into the country. This move contrasts with Western concerns over a slowdown in the Chinese economy.
China has reported its first-ever quarterly deficit in foreign direct investment (FDI), with a deficit of $11.8 billion in direct investment liabilities during the July-September period. This deficit is attributed to capital outflow pressure and Western governments "de-risking" moves in their dealings with China.