China stocks took a nosedive today as the government's measures to cool off a hot property market hit home.
Beijing's imposition of new cooling measures for home prices has apparently put a big damper on real estate and construction shares. China’s Shanghai Composite Index CN:000001 -3.65% dipped 3.7%, the worst such fall since way back in 2011. Hit particularly hard, the Hong Kong listings were slammed by China's cabinet imposing bigger down payments and mortgage rates on some homes. A big capital gains tax on existing homes sales went further in dampening the market.
Shanghai Industrial Development Co., Poly Real Estate Group Co., and Anhui Conch Cement Co. were a few of the entities already stricken with falling share prices according to MarketWatch. The highly speculative China housing market has been a major concern for Beijing, especially where affordability for Chinese citizens is concerned.