China plans to set up real estate fund worth up to $44 billion – REDD

FILE PHOTO: The Evergrande Center of China Evergrande Group is seen amid other buildings in Shanghai, China. REUTERS/Aly Song

HONG KONG  – China is planning to set up a real estate fund that could be worth up to 300 billion yuan ($44.39 billion) to support more than a dozen property developers, including embattled China Evergrande Group, financial information provider REDD reported on Monday, citing sources.

The fund has secured 50 billion yuan from China Construction Bank and a 30-billion yuan relending facility from the People’s Bank of China (PBOC), the report said, adding the fund can be upsized to between 200 to 300 billion yuan.

Regulators and local governments will select the developers eligible for support from the fund, REDD said, adding that the fund can be used to buy financial products issued by the developers or finance state buyers’ acquisitions of their projects.

Beijing is also considering a national policy for issuance of special bonds for shantytown redevelopment, the report said.

($1 = 6.7576 Chinese yuan renminbi)