After a 6-year Suspension, Mortgage-Supported Debt Sales to be Revived in China

Published Date : Jul 23, 2014

China will soon revive the debt sales which are mortgage-backed in this week after a hiatus of six years. These sales are initiated as the government provides its helps to homebuyers in the flagging real estate market.

The Postal Savings Bank of China Corporation consists of 39,000 branches all over the country. The bank plans to sell around USD 1.1 billion of the notes which are supported by the residential mortgages. Previously, such security in the nation was sold in 2007 by the China Construction Bank Corporation.

Avoiding the decline of the property market is being done by Premier Li Keqiang, data indicated last week that new home prices declined in a record number of cities in the world’s second-largest and fastest growing economy.

The central bank of China in the month of May called on the biggest lenders in the country to accelerate the granting of mortgages to first-home buyers and in cities, also the bank has eased property regulations in Hohhot, Nanning, and Jinan.

According to a market research analyst in Shanghai at Fitch Ratings Limited, the government has eased their attitude towards the real estate market since property demand has plunged this year. The policy measures taken by the government this year convey the message to the public that the property curbs will not be as strict as before.