China taps public debt to buy unused land from developers

BEIJING -- China plans to use regional bonds to fund the purchase of idle land from cash-strapped property developers for the construction of affordable housing.

Special-purpose bonds were first rolled out in 2015 as a way for local governments to fund infrastructure projects, including economic development zones and roads. A portion of the proceeds is now expected to be used to acquire undeveloped lots and unfinished buildings from real estate developers.