Chinese real estate services firms rally on news Zhengzhou lowers down payment ratio for second-home buyers

 

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Shares of Chinese real estate service companies stage a strong rally in the A-shares market on news that Zhengzhou city lowers down payment requirement ratio for those who buy second homes. Shares of 5i5j Holding, Hubei Guochuang Hi-Tech, Sanxiang Impression and Zhongtian Services are surging by the daily limit of 10% in Shenzhen.

Zhengzhou, capital of Central China’s Henan province, has lowered the minimum down payment requirement ratio for those who buy their second homes to 40% from 60%, according to local government-backed Dahe Daily newspaper, citing branches of several banks including Bank of Communications, China Merchants Bank and Zhongyuan Bank as well as local property project companies.

However, the report noted that some banks haven’t received the notice for the adjustment and still implement the previous requirement of 60% down payment ratio for second-home buyers.