Chinese stocks surged on Thursday after officials in a major city announced plans to buy unsold homes in what some analysts believe could be a trial run for a much bigger solution to the country’s property crisis.

A campaign by Chinese authorities to encourage people to replace their old apartments with new ones is attracting interest, but faces one major hurdle: the participants in the scheme are struggling to sell their current homes.

China is considering a radical plan to tackle its ongoing property meltdown which has caused widespread damage to its economy.

China is considering buying up millions of unsold properties as part of a radical plan to tackle its ongoing property crisis. Beijing is reportedly consulting with local government officials on proposals that would pave the way for state-owned enterprises to purchase empty homes from beleaguered developers en masse.