C China city raises down payment to rein in housing price

WUHAN - Central Chinese city of Wuhan on Wednesday followed the steps of several other cities nationwide by raising the minimum down payment on second homes in a bid to rein in soaring housing prices.

According to a circular released by the Wuhan branch of the People's Bank of China and the Hubei Provincial Banking Regulatory Bureau, the down payment is raised to 40 percent from 30 percent for those who already own a house but are buying a second in downtown districts.

The higher down payment, effective on Thursday, also applies to those who have two or more homes but still owe a mortgage.

The banks will continue to stop lending to those who have two or more homes but still owe two mortgages, it said.

Several other cities, including Nanjing and Suzhou, have raised the down payment for second homes along with other measures to curb price rises.