The China Communist Party (CCP) plans to set up a real estate fund worth up to 300 billion yuan ($44.39 billion) to support more than a dozen property developers, including the troubled China Evergrande Group (3333.HK), a media agency reported on Monday, July 25th.
The report also stated, the fund has received 50 billion yuan from China Construction Bank (601939.SS) and 30 billion yuan in re-lending from the People’s Bank of China (PBOC), adding that the fund could be expanded to between 20 and 300 billion yuan.
Regulators and local governments will select developers eligible for support from the fund, adding that the fund could be used to buy financial products issued by developers or to finance the acquisition of their projects by state buyers.
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