China central bank says to ease lending policies for second home buyers

[SHANGHAI] China's central bank on Monday eased lending policies for purchases of second homes, as Beijing moves to head off a sliding real estate prices that have amplified deflationary pressure and put economic growth at risk.

The People's Bank of China said in a statement on its website that it will adjust the minimum downpayment for second home buyers and improve lending policies to promote the "healthy development of the real estate market." The Ministry of Finance said in a separate statement that it will ease taxation of home sales.

Real estate stock indexes rallied sharply in Shanghai earlier on Monday when rumors of the change began circulating in state media.

REUTERS