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BEIJINGHONG KONG, May 17 Reuters China announced historic steps on Friday to stabilise its crisishit property sector, with the central bank facilitating 1 trillion yuan 138 billion in extra funding and easing mortgage rules, and local governments set to buy some apartments.

Investors hoped the measures marked the beginning of more decisive government intervention to compensate for waning demand for new and old apartments, to slow down falling prices and to reduce a growing stock of unsold homes.

Analysts have long called for the government to step in with its own purchases to prop up a sector which at its peak accounted for a fifth of GDP and remains a major drag on the world39;s secondbiggest economy.

Since the property market began its steep downturn in 2021, a string of developers have defaulted, leaving scores of idle construction sites behind, and sapping confidence in what had for decades been the preferred savings instrument for the Chinese population.

China Real Estate Newspaper, a publication managed by the housing ministry, said the heavyweight policies marked a significant historic moment for the sector.

China39;s CSI 300 Real Estate index of shares jumped 9.1 on the announcements.

It39;s a bold step, said Raymond Yeung, chief Greater China economist…