BEIJING - China's central city of Zhengzhou has asked residents to sell their second-hand homes to a local state-owned company and buy new ones instead, in a bid to reduce new-home inventories and boost the local property sector.
Most of China's small and medium-sized cities have suffered frail property markets, with the entire property sector in a liquidity crisis since a crackdown on high leverage on developers in 2021. Local cities that have been granted full autonomy to adjust property market policies have eased restrictions on home purchases, lowered mortgage rates, reduced down payments and offered subsidies for home purchases.
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