(MENAFN- ProactiveInvestors - Australia) China shares have fallen heavily as investors were spooked after Beijing announced that property developers would face more tightening measures to contain housing costs.
In mid Monday afternoon, China shares as measured by the Shanghai Composite Index were down a whopping 3.05 per cent, or -71.92 points to 2,287.58.
If the index settles at this point it would be the worst trading day in two years.
The country's annual parliamentary meetings are due tomorrow and reigning in the a galloping property market is seen as crucial to policy makers and to send a message to property speculators.
The State Council had demanded late on Friday an increase in required down payments and loan rates for buyers of second homes in cities where prices are rising too quickly.
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