China's central bank eases mortgage policies for homeowners

China’s central bank eased its mortgage policies on Monday in a bid to induce more buyers to pile into the country’s ailing housing market.

Early Monday, reports indicated that the Peoples Bank of China will cut down-payments on some first homes and lower down-payments on second homes by 40%.

The move comes after the country’s central bank hinted at further stimulus measures in the pipeline during Monday’s Asian trading session which propped up the Shanghai Composite index by 2.6%.

Uncertainties over the Chinese economy, weaker growth and tight mortgage restrictions have dented the country’s housing market over the past year.

China’s property sector accounts for one-fourth of the economy, affecting building materials, home appliances and transport.