China's Shenzhen eases home purchase curbs to unleash demand

Shenzhen, one of China's megacities, took another move to support the property market by easing some of the country's strictest house purchase restrictions, which had been in place for years to curb speculation.

Key takeaways

Beginning in 2016, the city of 17.6 million people implemented a series of policies that focused on curbing soaring home prices and speculation.
Shenzhen adjusted the definition of first-time home purchasers in late August to let more individuals to qualify for lower mortgage rates and smaller down payments.
Last Monday, the city lifted a long-standing prohibition, allowing Hong Kong and Macao citizens to invest in nonresidential buildings.
Under the latest measures, Shenzhen will no longer disqualify nonresidents from buying a home if their income tax or social insurance payments in the city have been disrupted for less than six months.

Market reaction

The above statement fail to move the needle around the Australian Dollar. AUD/USD is trading at 0.6421, unchanged on the day.