China's New Housing Plan: Insufficient and Unconvincing

China has introduced a significant support package to stabilize its struggling property market, including measures like reducing downpayment requirements, removing mortgage rate floors, and setting up a 300 billion yuan relending facility. Local governments can also instruct state-owned enterprises to purchase unsold apartments for social housing. This is the first nationwide government purchase program since the property sector's bubble burst in 2021, aiming to boost homebuyer confidence and clear inventory. However, the impact may be limited as the new funding can only cover a small fraction of the outstanding housing stock.