July 29, 2022
1 min read

China vows rescue fund to offset realty crisis

Experts say the boycott is a byproduct of two decades of insufficient oversight over a red-hot real estate sector…reports Asian Lite News

Chinese authorities are promising to establish an initial rescue fund of $11.8 billion (80 billion yuan) to offset a looming crisis in the real estate sector, where home buyers routinely purchase residences from developers’ plans and begin making mortgage payments before the dwellings are finished, media reports said.

By having customers purchase homes “off plan,” builders can receive construction financing and shift risks – such as costly pandemic-related supply chain delays and bankrupt builders – to the middle-class homebuyers, the VOA reported.

For many buyers, the risks seemed worth it. But then China’s Covid-cooled economy strained many family budgets, and draconian lockdowns stalled work on residential projects. As home prices fell, some buyers found themselves paying mortgages on properties worth less than what they had agreed to pay. That was followed by the tightening policies in August 2020, when the central government realized real estate developers’ debt was getting out of control, and draconian lockdowns stalled work on residential projects.

Amid all this, many home buyers announced they would stop making mortgage payments to banks until work resumed on unfinished projects, VOA reported.

Experts say the boycott is a byproduct of two decades of insufficient oversight over a red-hot real estate sector. One economist likened the situation to a Ponzi scheme, a type of fraud that pays existing investors with funds collected from new investors.

An economist in China, who requested anonymity due to fear of reprisal said that real estate companies have never been regulated.

“When the economy is good, with the continuous expansion, most of the properties can be delivered. But when the economy is not good, it becomes a bit like a Ponzi scheme. If there is no follow-up funding, they will not able to complete construction,” she said, VOA reported.

ALSO READ: Tibetan arrested in China for creating social media group

Previous Story

Nepal, India ink fertiliser deal

Next Story

Chinese court jails poet who called on Xi to step down

Latest from -Top News

UAE-India pact fuels future biz leaders

MoU between ADSM and UIBC-UC to foster entrepreneurship, mentorship, and collaborative research between UAE and India through 2028 In a landmark partnership aimed at cultivating the next generation of global business leaders,

‘1,563 Indians deported from US so far’

Though the ministry did not specify the reasons behind the deportations, the figure reflects a sharp uptick in removals under the Trump administration’s renewed focus on immigration enforcement…reports Asian Lite News More

Why TRF’s Terror Tag Matters

This wasn’t just counterterror—it was a signal. India fused intel, precision strikes, and tech for a swift, strategic blow. TRF wasn’t just named—it was hit….writes John Spencer  Today, July 17, 2025, the

Jaishankar Hails TRF Terror Tag

The US Secretary of State, Marco Rubio, made the official announcement on Thursday…reports Asian Lite News Reacting to the US designating The Resistance Front (TRF), a proxy of Lashkar-e-Taiba (LeT), as a
Go toTop

Don't Miss

Pakistan, China to renegotiate FTA benefits

The trade gap between the two countries increased significantly and

US will beat China in electric-car making: Biden

The Biden administration is working to add 500,000 charging stations