China plans to set up real estate fund worth up to $44 bln - REDD

[superadmin]

HONG KONG (July 25): China is planning 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 embattled China Evergrande Group, financial information provider REDD reported on Monday, citing sources.

The fund has secured 50 billion yuan from China Construction Bank, and a 30 billion yuan relending facility from the People's Bank of China (PBOC), the report said, adding the fund can be upsized to between 200 to 300 billion yuan.

Regulators and local governments will select the developers eligible for support from the fund, REDD said, adding that the fund can be used to buy financial products issued by the developers or finance state buyers' acquisitions of their projects.

Beijing is also considering a national policy for issuance of special bonds for shantytown redevelopment, the report said.

($1 = 6.7576 Chinese yuan renminbi)

[AlfonsoWilkins]

Has anyone else here looked into real estate funds like this, or how they might impact the global market?

[RobertArias]

This kind of intervention shows how critical the real estate sector is to the economy, and it could offer some stability to a pretty shaky market. Personally, I’ve been following international property trends, and while I was exploring options for investing, I came across https://albaresidencesdubai.com. Their approach to luxury developments made me think about the differences in how real estate is managed in different regions. In my experience, being mindful of local economic factors, like the ones we’re seeing in China, can really make or break your investment decisions.