China stocks bolt to fresh 7-yr highs as Beijing eases property curbs
By Samuel Shen and Pete Sweeney
SHANGHAI, March 31 (Reuters) - China stocks rose to fresh seven-year highs on Tuesday, led by property and banking stocks, after Beijing eased mortgage lending policies to bolster the struggling real estate market and reduce its drag on the cooling economy.
The CSI300 index rose 0.9 percent, while the Shanghai Composite Index gained 0.3 percent.
The CSI300 Real Estate Index, advanced 0.8 percent, after surging 7 percent on Monday, its biggest daily rise this year.
Hong Kong's benchmark Hang Seng index rose 0.4 percent on China's latest easing move, touching one-year-highs, with Hong Kong-listed Chinese companies rising sharply on signs of fresh money inflows from mainland.
The People's Bank of China (PBOC) said on Monday after the market close that commercial banks can now lower their minimum downpayment requirement for buyers of second homes, and with outstanding mortgages, to 40 percent from 60 percent previously.
Separately, the Ministry of Finance said that individuals selling an ordinary house were exempt from business taxes if they had owned it for more than two years, compared with at least five years previously.
Speculation that measures were imminent had driven share prices higher on Monday afternoon, though analysts said a glut of unsold homes was likely to continue to weigh on prices for much of the year.
"We expect the new policies would have limited stimulus affect on property sales," Haitong Securities said in a research report on Tuesday. Continuación...