KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
In a significant push to stimulate the struggling property sector, three of China's largest cities have relaxed homebuying restrictions following the central government's latest efforts. Guangzhou became the first tier-1 city to completely remove homebuyer eligibility checks and limits on the number of properties owned, according to a statement issued late Sunday. Meanwhile, Shanghai and Shenzhen announced that more people would be eligible to purchase homes in suburban areas and allowed existing homeowners to buy additional properties.
In a move to further boost demand, Shanghai and Shenzhen also lowered minimum downpayment requirements, with first-home buyers needing just 15% and second-home buyers 20%. These changes come as part of China's largest stimulus package to date, aimed at revitalizing the beleaguered property market. The package includes cutting borrowing costs on up to US$5.3 trillion in mortgages and reducing down-payment requirements for second-home purchases to historical lows.
The central government has taken strong action, with top leaders pledging to stop the real estate market's decline. In August, new-home prices fell at their fastest pace since 2014, prompting these aggressive measures. The People's Bank of China (PBOC) also announced it would allow mortgage refinancing for both first and second homes, starting Nov 1. This initiative could further ease financial pressures on homeowners, who will be able to renegotiate terms with lenders.
These changes are expected to reduce annual interest expenses by about 150 billion yuan, offering borrowers relief by slashing rates by an average of 50 basis points. The inclusion of second-home buyers in the mortgage refinancing plan marks a significant expansion compared to similar efforts last year, which focused solely on first-time buyers.
Major banks are expected to announce detailed rules by Oct 12, with refinancing set to be completed by the end of October. This rapid response from state-owned lenders, including Industrial & Commercial Bank of China, Bank of China, and Agricultural Bank of China, highlights the urgency of stabilizing Asia's largest economy, which is grappling with global economic uncertainties.
Comments
Post a Comment