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China May Use Capital Rules to Cool Property, Securities Says

China may use capital requirements for developers as a policy tool to cool the property market, Ba Shusong, deputy directory general of the State Council’s Development Research Center, told Shanghai Securities News in an interview.

The government may raise the minimum capital requirement for housing projects to 35 percent again, after cutting it to 20 percent last year, the report cited Ba as saying.

China should also consider using a property tax to curb speculation, Ba said in the interview.

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