In the latest state-led measure for property developers, China Construction Bank (CCB) will set up an RMB 30bn ($4.2bn) fund for a 10-year period to buy properties from Chinese developers. CCB will “invest in existing assets” of real estate companies and renovate the properties into rental housing. The banking regulator has approved the investment in the fund. The fund’s tenure could be extended too if required. This update adds to a series of measures that Beijing has taken in a bid to stabilize the distressed sector – special loans to deliver property projects, rate cuts and the latest being new local bond issuances guaranteed by China Bond Insurance Co. for 16 select developers.
CCB’s dollar bonds were flat with its 2.55% 2030s at 81.02, yielding 5.52%.
