Property: China related property stocks surged in today’s trading, with Yanlord up 4.7% and Ying Li up 7.1%, after Chinese regulators eased policies on China's real estate yesterday.
In a statement, the People’s Bank of China urged financial institutions to support home purchases via a mix of commercial lending and housing provident fund.
The latest policies changes will see commercial bank’s minimum down payment requirements for buyers of second homes reduced to 40% from 60%, while down payment for second home loans borrowing from the housing provident fund is now set at 30% (provided no outstanding mortgages), while first time buyers using the provident fund only need to pay a down payment of 20%.
Separately, the Ministry of Finance announced that individuals selling an ordinary house are exempted from business taxes if the house is owned for more than two years.
The latest move could signal that China still has ample measures in its arsenal to reach its 7% GDP growth target for 2015.