Property curbs may trigger influx of cash into stocks
SHANGHAI - China's crackdown on the real estate market may trigger an estimated 400 billion yuan ($58.6 billion) to flow out of property and into equities, according to the nation's largest brokerage.
The funds may be diverted into consumer-related stocks with small capitalizations and companies that may benefit from increased government spending in poorer regions, analysts led by Yu Jun at Beijing-based Citic Securities Co said in a report.
"The recent measures introduced by the government on property are just the beginning," wrote Yu. "The crackdown will prompt large pools of funds to enter the stock market."
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