China on Wednesday said it will cut the minimum downpayment level for first-time home buyers in many cities, stepping up support for the sluggish property market and stumbling economy.
It was the second measure in two days to fire up consumption following a government decision to halve the tax on the sale of small cars.
The central bank and banking regulator said they would be lowering minimum downpayments for first-time home buyers to 25 percent, from the previous 30 percent, in cities that do not have restrictions on purchases.
he move is intended to “support reasonable consumption of housing”, the People’s Bank of China and the China Banking Regulatory Commission said in a statement on the central bank’s website on Wednesday, dated Sept. 24.
