Chinese state-owned firms are buying foreclosed properties across the country, as Beijing seeks to revive its struggling real estate sector.
The property slump has weighed on economic growth and spending in the world’s second-biggest economy, and experts say the state purchases may finally halt further price falls, according to Reuters.
Though some analysts have long warned of impending mass mortgage defaults in China, others think fears may be overblown. As long as prices don’t fall more than 10% in 2026, homeowners’ equity will be protected by their high deposit rates, economists at Goldman Sachs said: Chinese buyers are required to put down a big chunk at closure, often exceeding 30% in large cities.
