Economy
China likely to spend full amount of stimulus
(Agencies)
Updated: 2010-01-10 19:28
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 A man walks across a snowy overhead bridge towards business buildings in Beijing on January 6, 2010. [Photo/Agencies] |
The State Council, China's Cabinet, stepped up measures on Sunday to curb unauthorized investment in real estate, a move aimed at countering speculation.
Policymakers have been trying for three years to cool a boom in housing costs that they worry could ignite a backlash if the poor are priced out of the market. But credit limits and curbs meant to discourage speculation and increase the supply of low-cost housing have failed to slow price rises.
"With the recovery of the real estate market, such problems as excessively rising house prices have recently emerged in some cities, which call for great attention," the State Council said in a notice.
The notice called for strengthening the monitoring of capital flow and foreign investment to prevent credit from entering the real estate sector illegally and "stop overseas speculative funds from jeopardizing China's property market."
It said families applying to buy second homes backed by loans should foot a minimum down-payment of at least 40 percent.
Governments at all levels should increase the supply of affordable homes to help resolve the housing difficulties of 15.4 million low-income households by the end of 2012, it said.
