Chinese Cities Further Ease Homebuying Policies to Spur Sales

Four cities relaxed polices on housing provident fund loans, a cheaper bank loan that is mostly used to buy apartments.

Photographer: Raul Ariano/Bloomberg
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China’s local governments are stepping up the easing of rules for their housing markets, as a protracted sales slump weighs on the economy and real estate developers.

A total of 15 cities have removed the lower limit for mortgage rates on first-home purchases as of Wednesday, the Economic Observer reportedBloomberg Terminal, citing its tally of announcements by local governments. The move, powered by the central bank’s relaxation of minimum mortgage rates last year, is designed to entice homebuyers as prices fall.