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Two Major Chinese Cities Move To Ease Mortgage Rules

CHINA PRESS
MNI (Singapore)

Guangzhou and Shenzhen on Wednesday become the first two tier-one cities in China to announce easing of mortgage rules to revive the ailing property sector. Guangzhou will allow home buyers to enjoy preferential loans for first-home purchases, with a 30% downpayment ratio and 4.2% interest rate, regardless of their previous mortgage record. The policy effects will be noted gradually over Q4 and more cities including Dongguan and Foshan in Guangdong province will likely follow, said Li Yujia, chief research fellow at Guangdong Urban & Rural Planning and Design Institute.

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