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Realty stocks decline on talk of fresh curbs

By Wang Ying in Shanghai | China Daily | Updated: 2018-08-02 09:13
A general view of a residential construction site in Chongqing, May 4, 2016. [Photo/IC]

The real estate sector ended Tuesday's trading down 2.98 percent on the A-share market, a day after the nation's decision to firmly curb rising home prices, which triggered market expectations that more restrictions would be in the pipeline in the second half of this year.

According to data on 143 real estate firms tracked by online financial consultancy, Future Land Holdings Co Ltd, a property developer based in Changzhou, Jiangsu province, led the fall by plunging 6.93 percent, and RiseSun Real Estate Development Co Ltd tumbled 6.82 percent, while Guangzhou Yuetai Group Co Ltd, Shahe Industrial Co Ltd and Poly Real Estate Group Co Ltd all fell more than 6.5 percent on Tuesday.

Analysts said the big fall is the market response toward the meeting convened by the Political Bureau of the Communist Party of China Central Committee on Monday, which said it would resolutely solve the irregularities in the property market, apply policies in accordance to local conditions, seek a supply and demand balance, and accelerate the establishment of a long-term and effective system for promoting the healthy and stable development of the real estate market.

"The meeting has set the tone for the market, which will be consistent and tight," said Yan Yuejin, director of E-house China Research and Development Institution, a Shanghai-based real estate information and research service provider.

The policies brought up by the meeting is in line with previous guidelines of guiding the property market to stable development, Nie Meisheng, founding president of China Real Estate Chamber of Commerce, was quoted as saying by the National Business Daily.

Although 192 tightening policies have been announced by local governments in the first half of this year, 65 percent more than that of a year ago, home price in major cities continued to rise. With more than 40 cities announcing 40-odd measures to rein in property market in July, refreshing a two-year record, the market will face an even tightening environment, according to Centaline data.

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