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STORY: China is considering a plan for local governments nationwide to buy millions of unsold homes. That’s according to Bloomberg on Wednesday, after Communist Party leaders called for efforts to clear mounting housing inventory at a meeting in late April. China’s property sector has been in a deep slump for years, hit by a debt crisis among developers. Cash-strapped private developers, like Country Garden, have halted construction on a large number of new homes that were pre-sold but now cannot be delivered on time. The buyers of these homes, meanwhile, are continuing to pay off their mortgages. Analysts agree there are tens of millions of uncompleted apartments across China. Policy measures since 2022 have failed to turn around the sector, which represents around a fifth of the country’s economy, and the slump remains a major drag on consumer spending and confidence. According to the Bloomberg report, local state-owned enterprises, using loans provided by state banks, would be asked to help purchase unsold homes from distressed developers at steep discounts, many of which would then be converted into affordable housing. Citing people familiar with the matter, the report said that officials in China are currently debating the plan's details and feasibility. China's housing ministry did not respond to Reuters request for comment.
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