Iron ore increased nearly 11% after China's three largest cities eased restrictions on housing purchases, supporting the demand outlook in the world's largest steel producing country.
While China's economy is slowing down, Beijing's aggressive support measures have revitalised iron ore prices. Initiatives to revive the property market, which has been depressed for a long time, were described by market researchers as ‘China's support measures are much stronger than expected, and there are expectations of more fiscal measures’.
Guangzhou was the first major city to remove all restrictions on home buyers, while Shanghai and Shenzhen reduced down payment rates for first and second homes to 15% and 20% respectively. In addition, the Bank of China announced that it will allow refinancing of mortgages.
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