PBOC Again Attempts to Cool Hot Housing Market

The People's Bank of China (PBOC) announced that it would increase the minimum down payment for mortgages on housing from 20 percent to 30 percent of the purchase price. In the press conference announcing the measures, the PBOC spokesman also said that tightening the down payment rule is necessary because of significant lending beyond existing rules. A Reuters survey of economists said the PBOC’s move reflected fixed-asset sector growth during the first two months of 2005 that far exceeded the government’s preferred target.