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31 Mar 2015
Shanghai Composite sets new 7-year highs on latest property sector measures – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments on the recent move by PBoC to cut second homes down-payment ratio to 50% from 70%, leading the Shanghai Composite to rally to set a new 7-year high.
Key Quotes
“China property names are outperforming the broader market following an overnight announcement by the PBoC to ease mortgage policy rules.”
“Sector names already staged broad gains in yesterday's session after local press reported the PBoC would cut second homes down-payment ratio to 50% from 70%. Instead, the PBoC went even further, lowering that floor to 40% to help the housing market recover after the latest property price data showed a record y/y rate of decline.”
“China International Capital Corp (CICC) estimated the volume of new home sales as a result of the policy change could be boosted by as much as 5%.”
“Separately in China, PBoC's regular open market operations saw an injection of CNY25B via 7-day reverse repos sold at 3.55%, unchanged from last rate of the prior week.”
Key Quotes
“China property names are outperforming the broader market following an overnight announcement by the PBoC to ease mortgage policy rules.”
“Sector names already staged broad gains in yesterday's session after local press reported the PBoC would cut second homes down-payment ratio to 50% from 70%. Instead, the PBoC went even further, lowering that floor to 40% to help the housing market recover after the latest property price data showed a record y/y rate of decline.”
“China International Capital Corp (CICC) estimated the volume of new home sales as a result of the policy change could be boosted by as much as 5%.”
“Separately in China, PBoC's regular open market operations saw an injection of CNY25B via 7-day reverse repos sold at 3.55%, unchanged from last rate of the prior week.”