The real estate market in China is going through bad times, and all previous attempts to cope with the situation are not working. So the government is taking drastic measures.

The Chinese government is ready to allocate 3.57 trillion yuan (501 billion dollars) to finally «revive» the local real estate market. This should help, given that to unfreeze all the stalled projects need much less finance — from 700 billion to 2 trillion yuan (these are the estimates of S&P Global).

All the measures the authorities have taken in the past have not worked: neither lower interest rates, nor admonitions to banks to sponsor builders intelligently, nor the allocation of special loans of 200 billion yuan. The 2 million houses already sold are still not completed, and the number of boycotts of mortgages is only increasing. In short, the situation is unenviable.

As noted by analysts at S&P, to overcome the downturn in China’s real estate market now more important than ever for the economy and social stability. In fact, that is why the authorities are going for such large financial expenditures.