China tightens property rules again

Beijing on Wednesday again tightened property regulations in a further effort to cool the market, AFP reported. The changes announced by China’s State Council, or cabinet, include a ban on loans for the purchase of a third home. The rate for down payments was raised to 30% for all home purchases, and limits were set on the number of homes people can buy in some cities where the markets are especially hot. The announcement also urged mainland banks to be more vigilant about issuing consumer loans to ensure these are not used for home purchases. The cabinet also recommended that the proposed property tax, currently under trial implementation in some cities, be sped up and expanded.