Media365
The municipal government said on Friday that families with Beijing residency, as well as those who paid social insurance and individual income tax in the city for a set period, would be allowed to buy new and second-hand homes outside the Fifth Ring Road, a major highway encircling the suburbs.
“While Beijing’s timing for policy relaxation is slightly surprising, we view the move as in line with the central government’s tone of removing buying curbs in non-central areas,” said Jeff Zhang, an equity analyst at Morningstar.
Beijing’s surprise policy move “came earlier than the market expected”, as most investors expected stimulus measures in September because sales and home-price data are expected to deteriorate in August, HSBC analysts said in a report on Saturday.
“We think it’s a positive change showing the government’s enhanced proactiveness in rolling out measures, which will help strengthen market confidence and address the concern on stimulus being too late,” they said.
