China unveils ‘historic’ rescue for crisis-hit property sector as home prices slump again

China has unveiled wide-ranging measures to rescue its property sector, including asking local governments across the country to buy unsold homes from beleagured developers and easing rules on purchases.

Even though China’s economy expanded faster than expected at the start of this year, growth is being weighed down by the all-important real estate sector, which once accounted for as much as 30% of economic activity.

He Lifeng, vice premier and the Communist Party’s top economic official, said Friday that municipal governments should buy unsold homes and convert them into affordable social housing, in a plan that has been trailed as a major solution for the country’s crisis-ridden property sector.

In a coordinated move, the Peopleâ