China’s property stocks fell as the eastern city of Wuhu suspended a decision to ease property curbs three days after its announcement, signaling that the central government won’t relax policies any time soon.
As Chinese Premier Wen Jiabao this week opens the annual gathering of the National People’s Congress with a pledge to shrink China’s wealth gap, his challenge will be reflected in the makeup of the assembly itself.
China told banks to stop loans for third-home purchases as the government steps up measures to cool property prices with some of the “most draconian” orders yet. Shares of developers and banks tumbled.
Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the U.S. currency amid concern the nation’s property market is overheating.
China increased the minimum down payment for second-home purchases and told local governments to set price targets on new properties, stepping up efforts to cool the markets and driving shares of developers lower.