China’s stocks have risen to their highest level since May despite new government property restrictions, state media reported. New rules intended to curb property speculation include raising the required down payment for all first-home buyers to 30%, expanding property tax trials nationwide and suspending bank loans to third-home buyers beginning October 1. Moreover, the city of Shanghai has restricted every household to buying only one commercial residential property as of October 7. A report by Guotai Asset Management said the new regulations will likely curb housing prices in the short term, but their long-term impact remains unclear. Some indicators suggest that the regulations have severely dampened residential property sales in Beijing since October 1. Despite the curbs, the Shanghai Composite Index climbed 3.1% by the close on Friday, its biggest increase since May 24 this year.
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