Chinese Government Cuts Downpayment Requirement to 25%

China on Wednesday said it will cut the minimum downpayment level for first-time home buyers in many cities, stepping up support for the sluggish property market and stumbling economy.

It was the second measure in two days to fire up consumption following a government decision to halve the tax on the sale of small cars.

The central bank and banking regulator said they would be lowering minimum downpayments for first-time home buyers to 25 percent, from the previous 30 percent, in cities that do not have restrictions on purchases.

he move is intended to “support reasonable consumption of housing”, the People’s Bank of China and the China Banking Regulatory Commission said in a statement on the central bank’s website on Wednesday, dated Sept. 24.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza