The second largest economy in the world is not getting going as usual after Corona. The real estate crisis weighs heavily. Now countermeasures continue.
Beijing – According to reports, further investment incentives are being set up in China to support the flagging economy. According to information from the state news agency Xinhua, the government in Beijing wants to counteract the real estate crisis by relaxing credit conditions. According to a newspaper report, investors in the Chinese stock market can also expect lower brokerage commissions.
The Chinese economy is having great difficulty finding its way back to its old growth strength after the corona pandemic. There is also a severe real estate crisis. This also weighs on the stock market, which is the second largest in the world after the USA.
New guidelines for equity investors
The Chinese stock index CSI 300 has fallen a good four percent so far this year. It includes the top 300 stocks on the Shanghai and Shenzhen stock exchanges. The Hong Kong Special Administrative Region’s Hang Seng Index is even weaker at minus nine percent. China’s stock market is still in the red today.
Chinese authorities have issued nationwide policies to ease mortgage lending for certain buyers, Xinhua reported, citing documents from the Bank of China and other regulators. This means lower down payments and lower interest rates.
People who want to buy real estate in big cities but have already taken out a mortgage should still be treated as first-time buyers. Among other things, this would mean lower down payments.
The Chinese real estate sector has been in a severe crisis for some time. This threatens to drag down the entire country’s economy because many project developers are stuck in financial problems.
In order to keep investors on the stock market, the country’s most important stock exchanges announced last week that they would reduce fees for stock trading from next Monday. Now the stock brokers are following suit: Eleven brokerage houses have announced lower commission costs, the Chinese financial newspaper “Securities Times” reported in Beijing. dpa
2023-08-25 14:57:13
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