China stimulates property sector

Beijing yesterday said it would lower taxes, make it easier for property developers to obtain credit, and reduce the lock-up period for home sales, during which owners are unable to sell without paying stiff taxes. The measures come after repeated interest rate cuts and the announcement of a Rmb4,000bn ($585bn, £379bn, €407bn) economic stimulus package, all aimed at maintaining growth of at least 8 per cent.

Economists say reviving the property sector is vital to efforts to counter the current downturn, which has worsened in the past month, with factory output growth falling to the slowest pace on record.

The State Council, China's cabinet, said it would shorten to two years from five the period during which home owners are subject to a business tax if they resell their homes.