China shares slump on property clampdown

New measures to cool China’s property market caused the Shanghai stock market to sink 3.7% on Monday, the biggest decrease in 19 months, The Wall Street Journal reported. Worries over slower investment also hurt cement and banking shares and pushed the Australian dollar to an eight-month low against the US dollar. China said Friday it would move to slow rising house prices by imposing higher down payments and mortgage rates and strictly enforcing a 20% capital gains tax on property transactions. A separate report said the measures might trigger a short-term buying rush and increase home prices before local governments implement the capital gains tax.