Chinese authorities unveiled a series of measures aimed at stabilizing the country’s ailing property sector.
On Friday, China announced broad measures to support the troubled property sector. They include the reduction of first and second-time homebuyers’ down payment ratios from 20 percent to 15 percent and from 30 percent to 25 percent, respectively. The nationwide minimum mortgage rate has also been removed while the central bank is planning a 300 billion yuan ($41 billion) relending facility to support state-owned enterprises to buy unsold homes.
This marks Beijing’s most serious attempt at rescuing the housing market. According to public data, new home prices fell 0.6 percent month-on-month in April – the 10th consecutive month of decline and the steepest since November 2014.
