New Real Estate Policy Targets Speculators – Li Zhigang

From Caijing.com.cn:

The People’s Bank of China and the China Banking Regulatory Commission have announced plans to impose new real estate lending and credit policies aimed at quelling speculation through mortgage controls. Investors reacted to the announcement September 27 by pushing the Shanghai real estate compound index down nearly 4 percent to 303.25 points.

At the core of the policy framework is a plan to limit developer speculation by regulating mortgage financing. Sources said the policy will increase the required down payment for second-property purchases to 40 percent from the current 30 percent. Down payment rules for additional properties would be determined by individual commercial banks. [Full Text]