China plans to collect up to 300 billion yuan (about $44.4 billion) to support real estate developers struggling to finish their projects, while over half a million buyers stopped mortgage payments on their unfinished homes in July.The fund is collected by China’s State Council, financial information platform REDD reported on July 26. The China Construction Bank has contributed 50 billion yuan (about $7.4 billion) and China’s central bank—the People’s Bank of China (PBOC)—made an effort of 30 billion yuan (about $4.44 billion). The report didn’t indicate which organizations will pay the rest. However, the fund can’t even fill the loop that the “rotten tail buildings,” or the unfinished presale houses created. The Chinese regime allows real estate developers to presale apartments even when the buildings are only drawings. Buyers need to pay the whole price, which includes a down payment and mortgage after they sign the contract. The project becomes “rotten tail buildings” when the developer has halted construction for 12 months. State-run Shanghai E-House Real Estate Research Institute reported on July 18 that there are about 900-billion-yuan (about $133 billion) in mortgages tied to the “rotten tail buildings” in China. Buyers started to refuse to pay mortgages in July. A residential and commercial complex under construction in Nanning, in southern China’s Guangxi region on Nov. 9, 2021. (STR/AFP via Getty Images) By July 26, victims from 113 cities in 26 provinces listed 321 unfinished building projects on GitHub.  They uploaded photos and statements to verify the authenticity of the claims. E-House calculated that there are 1,701 apartments in one project on average, which means about 550,000 buyers can’t move into the homes they purchased. E-House warned in its 2022 annual report that buyers of 3.85 percent of China’s real estate projects might refuse to pay the mortgage because the presale homes they bought are “rotten tail buildings,” even though it means they will have a lowered social credit score. The social credit system is a method the Chinese regime uses to control people. The regime doesn’t allow a low score person to take public transportation or allow their children to go to public schools. State Fund Won’t Solve the Issue: Banker On top of the $44.4 billion state fund, local regimes in eastern China’s Jiangxi, central China’s Hunan, southwestern China’s Yunan, northwestern China’s Shaanxi, and southern China’s Fujian provinces also launched local funds to help real estate developers, state-run Jiemian News reported on July 22. However, economists and bankers don’t think these funds can solve the issue. “Unless the Chinese regime likes to spend all its money on the real estate market,” Cheng Xiaonong, a political and economics scholar who holds a Ph.D. in sociology from Princeton University, commented on July 24. Cheng didn’t think the regime would spend its national treasure. “One fund can’t solve the issue,” Zheng Yi, a former China investment banker, told The Epoch Times on July 21. “The rotten tail buildings issue is an accumulated problem. It needs new policies and a large amount of funds to solve.” Zheng said that developers purchase lands from a local government, sell the apartments to individuals, bribe the government officials and banks to make the projects progress smoothly, put the money into their own pockets, and then pays for the construction. Residential buildings under construction in Yichang, Hubei Province, on Oct. 20, 2021. (STR/AFP via Getty Images) The developers borrow from banks. At the same time, the buyers get mortgages from banks. With the loans and the sales income, the developers should have enough money to finish a project. However, they can’t finish the project if they don’t calculate and control the costs well. On the other hand, the banks that provide loans and mortgages are facing big risks when the project remains unfinished. To solve the issue, the government has to use taxpayers’ money. “The government can only support a few developers that it wants to help,” Zheng said. “It doesn’t have the capacity to help all.” Zheng believes there will be chain reactions. New buyers will only purchase from developers who received the government funds. The other developers will go bankrupt faster, which means they can’t pay back their loans or finish all the projects. Then the banks have nothing to foreclose on and can’t collect the loans and mortgages. The banks face the risk of bankruptcy and can’t issue any more loans to the surviving developers. “It’s hard to solve the issue,” Zheng said. “I think the worst problem in China’s real estate industry is that the consumers and investors don’t have confidence in the market.” Market Confidence China’s property market has lacked buyers since the pandemic began. At the same time, more and more people try to sell their homes. To revitalize the market, the Chinese regime launched policies to either encoura