Major Chinese cities Shanghai and Shenzhen are poised to lift significant home purchase restrictions in the coming weeks, aiming to attract buyers and revitalize their struggling real estate markets.

What Happened: The changes will allow potential buyers to purchase homes without undergoing eligibility checks. Additionally, individuals from other regions in China will be permitted to buy properties in these cities, which were previously restricted due to concerns over excessive speculation, Reuters reported, citing four sources with knowledge of the matter.

The report revealed that both cities plan to eliminate limits on the number of homes one can purchase. This decision aligns with efforts by other Chinese cities that have abolished purchase restrictions over the past year to boost demand in the crisis-hit sector.

These developments follow broader monetary stimulus and property support measures announced by the central bank on Tuesday, which include liquidity injections and interest rate cuts. The goal is to restore confidence in the economy and achieve the 2024 economic growth target of approximately 5%.

China’s CSI 300 Real Estate Index saw a 7.8% rise in the morning session on Friday, further extending gains. The easing measures are part of a broader strategy to stabilize the troubled property sector, which has been in a prolonged downturn since mid-2021.

See Also: China’s Stimulus Sparks Optimism: 3 Large-Cap Stocks With Analyst Buy Ratings

Why It Matters: The decision by Shanghai and Shenzhen to lift home purchase restrictions comes amid a series of aggressive economic stimulus measures by the People’s Bank of China. On Monday, the PBoC cut a key short-term interest rate and injected over $10 billion into the financial system to boost the economy.

Following this, Chinese stocks surged to their highest levels in four months on Monday, driven by hopes for additional stimulus.

On Tuesday, Chinese stocks continued their upward trend as the PBoC unveiled further monetary stimulus, including cuts to the reserve requirement ratio for banks.

By Wednesday, the economic stimulus had sparked optimism among analysts, who identified several large-cap Chinese stocks with strong upside potential. The PBoC’s measures are expected to inject approximately $140 billion into the economy, encouraging more lending to boost growth.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote