After struggling with uncertainty for a long time, China has finally come to the rescue of its real estate sector after President Xi Jinping decided to shift his approach towards supporting the economy.
On Friday, the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission issued a notice to financial institutions, laying out plans to ensure the 'stable and healthy development' of the real estate sector.
Through the '16-point' plan, it includes measures to deal with the developer's liquidity crisis and relax the down-payment requirement for home buyers.
The move is in line with the '20 points' rule announced by the National Health Commission which aims to reduce the economic and social impact of Covid-19 control measures.
This is a significant change taken by the Xi government after facing a gloomy outlook for economic growth due to repeated coronavirus restrictions.
The change comes just before Xi is expected to meet US President Joe Biden on Monday on the sidelines of the G20 summit, in the first face-to-face meeting between two heads of state since the outbreak began.
