Key insights
- Shenzhen is easing homebuying restrictions to stimulate demand in its struggling property market. While this may signal a broader effort to stabilize China's economy, the direct impact on U.S. equities is likely limited. A stronger Chinese economy could indirectly benefit some U.S. companies, but the immediate effect is slightly bearish due to concerns about China's economic slowdown.
BEIJING, April 29 (Reuters) - Shenzhen, one of China’s four first-tier cities, further relaxed restrictions for buying homes in the city in a bid to spur demand.
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Eligible households will be able to buy an additional home in some central areas of Shenzhen, according to measures released by local housing authorities on Wednesday.
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Some buyers will be able to take out more mortgages under the country’s housing provident fund programme.
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The measures, effective from Thursday, are aimed at better meeting residents’ homebuying needs and supporting the stable and healthy development of the real estate market, authorities said.
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China’s property market is stuck in a years-long slump, but home price data in March showed some improvement in major cities.