A plan to rescue the housing market in China has been prepared

China has prepared a 16-step recovery plan to bail out the housing market, which has suffered a deep recession and liquidity problems.

Sources told Bloomberg that the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission sent a statement to financial institutions on Friday laying out plans to ensure the "stable and healthy development" of the real estate sector.

According to the sources, unlike previous supportive steps, this package consists of far-reaching measures, from the liquidity crisis faced by homebuilders to easing down payment requirements for home buyers.

Under the bailout plan, unpaid bank loans and debts of housing companies that are due in the next six months can be extended for one year, and the repayment of their bonds can be delayed or exchanged through negotiations.

This plan, which was announced after Friday's 20-point package aimed at easing the economic and social burden of virus restrictions, was considered another sign that Xi Jinping has turned his focus to saving the economy.