C
hina's major cities, Shanghai and Shenzhen, are set to ease home purchase restrictions in the coming weeks as part of efforts to revive their struggling real estate markets. The changes will allow buyers to purchase homes without undergoing eligibility checks and permit individuals from other regions to buy properties in these cities.

    The move follows a broader strategy by the central bank to stabilize the troubled property sector, which has been in decline since mid-2021. Other Chinese cities have already abolished purchase restrictions over the past year to boost demand.

    Shanghai and Shenzhen plan to eliminate limits on the number of homes one can buy, aligning with efforts to restore confidence in the economy and achieve the 2024 economic growth target of around 5%. The CSI 300 Real Estate Index rose by 7.8% on Friday, extending gains.

    The decision comes amid a series of aggressive economic stimulus measures by the People's Bank of China, including liquidity injections and interest rate cuts. Analysts expect these measures to inject approximately $140 billion into the economy, encouraging more lending to boost growth.