The move comes even as policymakers take steps to contain a real estate crisis that is weighing on the economy, according to a Bloomberg report.
The bank in a statement said that through the fund, which lasts for 10 years, it will “invest in existing assets" of real estate companies and renovate the properties into rental housing. Realty companies in China have been facing a credit crunch after the government earlier tightened lending to the sector in order to reduce debt risks.
China Construction Bank Corp had 181 billion yuan in outstanding loans related to rental housing by the end of June, 35 per cent more than at the end of December. A home-leasing platform it operates has covered 96 per cent of areas at the city level and above in China, according to the Bloomberg report attributing it to this year’s first-half report.
(source:news18)
