China is considering a new real estate support package to boost the economy, Bloomberg reported. Regulators are considering lowering down payments in some districts of major cities, lowering brokers' commissions on transactions and further reducing transaction fees.
The government may also refine and expand some of the solutions outlined in a wide-ranging 16-point rescue package already outlined last year. China's property sector has avoided a slump, but remains a key drag on the world's second-largest economy. House sales slowed in May and rose just 6.7% from over 29% in the previous two months.
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Sentiment in China's mortgage market remains depressed. Source: Bloomberg
Nonetheless, the above news helped propel the Chinese developers' index to more than 6% growth today. Source: Bloomberg
The Chinese market is clearly gaining today, with the sheer scale of the rally in the CHNComp index and the Chinese yuan supported by the above news. Source: xStation 5