Four Chinese cities restrict property purchases
Four Chinese cities have already announced new limits on property purchases. It’s because the government is on the verge of cooling ascending home prices stoked by property speculators in second- and third-tier cities throughout the country.
The measures in Zhengzhou, Jinan, Chengdu as well as Wuhan turned to be the latest in a string of steps to drastically tighten credit flowing into the property sector because the government attempts to balance the necessity to prevent bubbles while stimulating economic growth.
The spate of tightening measures for the last two weeks shows that China's top level might have already reached consensus that the worries regarding overheating in property market might have overshadowed the worries as for the economic slowdown. That’s what OCBC revealed in a research note on Monday.
The given shift of policy tone also indicates that China won’t likely to stimulate its economy further aggressively as it might not bode for market sentiment in the longer run.