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All the Tools the PBOC Has to Support China’s Property Sector
The People’s Bank of China is the key actor in Beijing’s intensifying effort to shore up the housing market, pumping in cash through a variety of programs with more funds available if they’re needed. The PBOC’s latest tool is likely the most powerful so far, making 300 billion yuan ($41 billion) of cheap credit available for banks to fund local-government purchases of unsold homes. The goal is to chip away at the country’s excess housing stock and ease cashflow strains for developers. That relending program is just the latest in a series of facilities set up by China’s central bank to fight the slump — ... (full story)