Chinese city cuts home down-payment ratio in bid to boost demand

The eastern Chinese city of Heze is allowing some home buyers to pay lower down-payments for their purchases, two sources with direct knowledge of the matter said, in the first reported case of a city easing the borrowing rule.

Regulatory curbs on borrowing have driven China's property sector -- a major economic growth driver -- into a sharp downturn, squeezing the cash-flow of many developers and chilling buyer sentiment. Financial markets are waiting to see if restrictions will be eased soon to revive activity.

For buyers with no mortgage history, the minimum down-payment ratio has been cut to 20% from 30%, while