Guangzhou eases mortgage rules as China ramps up efforts to revive property sector
Guangzhou on Wednesday became the first major Chinese city to announce an easing of mortgage curbs as the government ramps up efforts to revive the property sector and shore up the economy.
Beijing hopes the reduction in mortgage payments will help revive consumer demand for property.
China's mortgage loans totaled 38.6 trillion yuan (US$5.29 trillion) at the end of June, representing 17 percent of banks' total loan books.
In a notice, the Guangzhou city government said mortgage curbs would be eased, allowing home buyers to enjoy preferential loans for first-home purchases regardless of their previous credit record.
Hong Kong's Hang Seng Mainland Property Index rose as much as 3.3 percent after the Guangzhou city government's announcement.
The reduction in existing mortgage rates is one of several support measures Beijing has announced over the past few weeks.
China's benchmark banking sector index fell 1.04 percent after the Guangzhou mortgage announcement while China's CSI300 index gained 0.02 percent.