SHANGHAI, March 16 (Reuters) - China has excluded property from the 10 top industries targeted for government support in an economic stimulus package for the next three years, a signal that Beijing has settled on a policy emphasising stable prices and affordable urban housing, after repeated U-turns in its approach.
Following are key facts on the tortuous path of China's real estate policy. For a related story, see [ID:SHA212009]
POLICY APPEARS IN PLACE (2009)
Feb. 27 -- China announces final plans for boosting 10 key industries over the next three years: steel, shipping, autos, logistics, petrochemicals, textiles, light industry, non-ferrous metals, equipment/machinery and electronics/information.
The property sector is conspicuously excluded.
U-TURN TO SUPPORT PROPERTY MARKET (2008-H2)
Dec 17 - China announces measures to support the property market, including cuts in business and transaction taxes for real estate sales, and policies to make it easier for developers to obtain credit. [ID:nPEK209153]
Nov. 7 - China announces a 4 trillion yuan ($585 billion) two-year stimulus package. One-10th, or 400 billion yuan, is to be used on construction of affordable housing.
Oct 22 - China announces a series of policy changes: lower mortgage rates, reduced down payments, lower transaction taxes. [ID:nLM444674]
Since mid-September -- China cuts preferential housing mortgage rate five times, in line with interest rates cuts aimed at boosting the economy.
H2 -- Many local governments, including Beijing, Shanghai, Nanjing and Hangzhou, announce various measures to support property markets, such as cash subsidies.
MEASURES TO CURB PROPERTY PRICES (2007; 2008-H1)
June 7, 2008 - For the fifth time in 2008, the central bank raises the amount lenders must hold in reserve by a full percentage point, an indication of official alarm over the huge amount of cash flooding into the economy.
Jan 16, 2008 - China raises the proportion of deposits banks must hold in reserve for the 11th time since the start of 2007 to keep a flood of liquidity from entering the economy.
Jan 7, 2008 - China says land acquired from local governments that goes undeveloped for more than one year will be subject to an "idle land charge" of 20 percent of the purchase price.
Dec 11, 2007 - The central bank orders banks to scrutinise mortgage borrowers more closely.
Sept 28, 2007 - The central bank and the China Banking Regulatory Commission say they will ban banks from lending to developers found to be hoarding land. Required down payments for second homes are raised to 40 percent from 30 percent, and requirements for commercial properties increased to 50 percent from 40 percent.
Aug 7, 2007 - China bans foreign investors in Chinese real estate from borrowing offshore.
June 11, 2007 - The Commerce Ministry issues new rules making it harder for foreigners to invest in property, partly by making them obtain land-use rights before developing projects.
March 23, 2007 - The Construction Ministry says it will check whether local governments are implementing measures aimed at cooling the market and errant officials will be held accountable.
Jan 23, 2007 - The Construction Ministry says it will increase taxes to discourage sales of large homes.
Jan 17, 2007 - The national tax administration says it will start taxing the appreciation of property values based on actual market prices. Chinese developers say later that their earnings will be little affected by enforcement of a land appreciation tax that authorities had largely ignored for years. ($1=6.84 Yuan) (Reporting by Lu Jianxin; Editing by Edmund Klamann)