In a bid to further restrict the speculative housing bubble in China, the central government has raised the minimum deposit for families purchasing a second home from 40 to 50% and set the minimum deposit for First Home Buyers purchasing property that is larger than 90 square metres at 30%.
Further restrictions were made on Saturday paving the way for commercial banks to refuse loans to people buying their third home.
The changes lead to a 4.8% fall in the Shanghai Composite today, the biggest fall in eight months.
» Chinese shares plummet nearly 5% over tightening moves – China Daily, 19th April 2010.
» China ups war on property prices – The Australian, 19th April 2010.
» China moves to prevent property bubble – CNN, 16th April 2010.