A major step-up in support

Stimulus efforts are finally gaining momentum. Yesterday, regulators announced measures to support households and shore up the property sector, including looser downpayment requirements and reductions to existing mortgage rates. And today, the state banks began cutting deposit rates.

This will reduce the upfront cost of homeownership in many large cities and redistribute income toward the households with the most leveraged exposure to the property market. If it can also boost wider confidence, then it may be just enough to arrest the downward spiral in the housing market.