China stocks log best day in a month after Beijing steps up stimulus

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Home purchase limits may soften after previous policies failed to drive a sustained market rally.

After a record August net selling, foreign investors bought US$935 million of Chinese equities on Monday.

All four tier-1 cities in China loosened the definition of “first-time homebuyer” to ease mortgage credit for qualified individuals. Top banks paved the way for further cuts in lending rates and sources said Beijing was planning further action including relaxing home purchase restrictions. Most sectors rose in onshore markets, with energy , insurance firms and liquor makers up between 2.5% and 3.4%.

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