Shares at 20-month high on realty firms

Shanghai stocks climbed to a 20-month high yesterday, helped by a 1.7 percent jump in a gauge of property stocks that were boosted by a relaxation in property measures by the central authorities.

The Shanghai Composite Index rose 0.8 percent to 2,382.79 points.

The China Banking Regulatory Commission and the People's Bank of China released a joint notice on September 30 to improve financial services for the real estate industry.

The new policies include a longer loan period for public housing projects and an easing in loan rules for individual buyers. For example, the PBOC unveiled a cut in mortgage rates and minimum down payment for some home buyers. Buyers who own a home and have their mortgage paid off will be considered first-home buyers and enjoy discounted mortgage rates of as much as 30 percent off the benchmark lending rate, the PBOC said. Previously, they had to pay 10 percent or more above the benchmark rate.

Shanghai Fenghwa Group jumped by the daily limit of 10 percent to end at 13.70 yuan (US$2.23), Hua Yuan Property surged 9.94 percent to finish at 3.87 yuan.