Jan 27 (Reuters) - Chinese property stocks tumbled on Thursday after Beijing announced fresh steps to cool the real estate market.
China unveiled late on Wednesday a series of new measures to curb property prices, including requiring unruly local governments to set price controls and tightening mortgage requirements for second-homes.
China Vanke, the country's biggest developer, tumbled over 5 percent in early trading, while Gemadale, another major developer, slid 6.5 percent.
The benchmark Shanghai Composite Index SSEC was down 0.9 percent. The property sub-index .SSEP fell 3.5 percent.
China is stepping up property curbs as part of efforts to control inflation amid fears that rising prices would endanger the financial systems and stir social unrest.
City governments must set property price control targets in line with local income levels for 2011 and need to make the targets public in the first quarter, according to a statement by the Chinese cabinet.
Banks would require a down payment of at least 60 percent for second-home buyers, up from 50 percent currently, while local residents would be barred from buying a new home if they already own more than two houses, according to the new measures.
The statement did not mention the long-discussed property tax, but the government would step up tax collection in the property sector.
It is widely expected that Shanghai and China's western city of Chongqing will start levying property taxes as soon as during the first quarter of 2011.
