Bank of China Ltd. along with four other state lenders will end preferential mortgage rates for first-home buyers in Shenzhen, according to a local newspaper, marking the central government’s latest measures to curb property prices.
Industrial and Commercial Bank of China Ltd, Bank of Communications Co Ltd, Agricultural Bank of China Ltd and China Construction Bank Corp will also take similar steps, said the ND Daily.
Home prices in China’s major cities rose by more than a fifth last year, according to the China Real Estate Index System (CREIS), the biggest online real estate company in China.
Last year, Beijing introduced a series of property measures, including curbing land prices, to cool down the property market, counter speculative fund inflows and combat asset bubbles. Shanghai and Chongqing last month also implemented their first property tax for home buyers, speeding up the government’s battle to fight increasing property prices and rapid inflation.