China extends $500 Billion in Credit to Resuscitate Property Sector

The Ministry of Finance, state tax authority, and the Ministry of Housing and Urban-Rural Development outlined new tax incentives aimed at boosting the real estate sector. The policies include enhancing deed tax incentives for housing transactions to support both basic and improved housing needs, which is expected to encourage more buying and selling in the market. It was also announced that the state would make over $500 billion in credit available for unfinished housing projects, according to state broadcaster CCTV.

These initiatives are part of China's broader strategy to revive its real estate sector, which has been a significant contributor to the nation's GDP but has struggled in recent years. These new policies are seen as part of a wider effort by the Chinese government to stimulate economic growth and achieve its 5% GDP growth target for 2024.

On November 13, China introduced a series of tax policy changes designed to support its struggling real estate market, which has been facing a prolonged slump. Key measures include cuts to property deed taxes and VAT (value-added tax), aiming to stimulate housing transactions and ease financial pressures on real estate companies.

Additionally, the land value-added tax prepayment rate has been reduced, a move that aims to relieve financial difficulties for real estate companies amid a tightening credit environment.