Capital flows moving from real estate

Limits on property purchases redirect funds to A-shares

Limits on residential property purchases are driving capital flows into stocks, resulting in immediate, short-term increases in stock prices in China's A-share market, analysts said on Monday.

As many as 20 cities have pushed up their thresholds for home purchases, including setting higher down payment requirements and narrowing the definition of qualified buyers. More cities are on their way to introduce similar measures to curb fast growth of average housing prices and to limit speculative buying.