China increased the discounts on mortgage interest rates for first-home buyers to 30% in late 2008 to boost the property sector as part of its effort to stimulate the local economy.
Bank of China, the country’s fourth-largest lender by assets, has now said in a statement on its website that it will halve the discounts its customers got to 15%.
Bank of China said, "The bank will strictly curb all kinds of property speculation and speculative investments, and will halt the issue of mortgages to people who are buying three or more houses."
Wall Street Journal stated the latest data showed property prices in 70 of China’s large and medium-size cities rose 11.7% in March from a year earlier, the fastest pace since China began issuing the data in July 2005.