Housing oversupply remedy on agenda

Central bank recently announced 300 billion yuan re-lending facility

China has launched the implementation of a recently announced policy to address surplus housing inventories, which analysts said is likely to significantly expand in size as a potent tool to stabilize the ailing residential property sector.

They made the comments after the People's Bank of China, the country's central bank, held a meeting on Wednesday calling for efforts to ensure effective implementation of the affordable housing re-lending facility and accelerate the destocking of housing inventories.

On May 17, the PBOC announced that it would establish a 300 billion yuan ($42.25 billion) re-lending facility, which will provide funding for State-owned enterprises to buy completed commercial properties for repurposed affordable housing.