REUTERS/Aly Song/File Photo Acquire Licensing RightsHONG KONG, Sept 1 (Reuters) - China is set to take further action including relaxing home-purchase restrictions as it scrambles to tackle a deepening crisis in its massive debt-riddled property sector, four people familiar with the matter said.
They plan to act as existing policies failed to sustain a sector rebound earlier this year, the people added.
The property sector accounts for roughly a quarter of the world's second-largest economy.
However, it is in the throes of an unprecedented debt crisis that market participants fear could spread throughout the financial sector at home and beyond.
They also reduced the downpayment ratio to no lower than 20% for first-home buyers and no lower than 30% for second-home purchases.
Persons:
Aly, Morgan Stanley, Julie Zhu, Jane Xu, Sumeet Chatterjee, Christopher Cushing
Organizations:
REUTERS, Regulators, Council, Information Office, Reuters, Housing, People's Bank of China, National Administration of Financial, Thomson
Locations:
Shanghai, China, HONG KONG, Beijing, Shenzhen, Guangzhou