Chinese leaders are reportedly meeting to discuss a possible plan for the government to purchase millions of unsold homes in an effort to support the struggling property sector. The State Council, China's top government body, is seeking input from key industry players to finalize a strategy.

One of the proposed plans is for local governments in China to buy millions of unsold homes across the country. This plan, if implemented, would be one of the most ambitious attempts to address the challenges faced by the beleaguered property market.

The meeting, attended by regulators, representatives of top banks, local governments, and the property market, is taking place to discuss these potential measures. While Beijing has not confirmed the meeting, the State Council has announced a briefing attended by officials from the housing ministry, China's top regulator, and its central bank.

The news of potential government support for the property sector has led to a rally in shares of Chinese developers in Hong Kong. Companies such as Agile Group, CIFI Holdings, Fantasia, and Sino-Ocean Group have seen significant gains in their stock prices.

China's property sector has been under strain since 2020 when authorities tightened developers' access to credit to reduce mounting debt. Major companies, including China Evergrande and Country Garden, have faced financial challenges, and falling prices have discouraged consumers from investing in property. Measures introduced by the central government to support the sector have had limited success so far.