China called for higher down payments and interest rates for second-home mortgages in cities with “excessively fast” price gains and ordered stricter enforcement of taxes on sales as authorities step up a three- year campaign to cool the property market.
China’s stocks rose the most in three months after new lending and money supply exceeded estimates in December, boosting speculation the government is relaxing monetary policies to bolster economic growth.
Asian stocks reversed losses as shares of Chinese lenders and developers rallied after China’s new lending and money supply increased. Exporters dropped after a Federal Reserve official said the central bank probably won’t begin a new round of bond purchases.
China may see “severe” employment losses next year as millions of temporary jobs end with the completion of projects under the government’s 4 trillion yuan ($585 billion) stimulus package, according to China International Capital Corp.
Chinese Premier Wen Jiabao struck a cautious note about the world economy, saying the sovereign-debt crisis in some countries is “deepening” and the foundations of a global recovery are not yet “solid.”