China's cement sector faces impact of new property control policies

The Chinese cement sector recovery is likely to face further headwinds in the near-term given stricter property control policies announced on 1 March.

The government is to initiate an array of measures including higher transaction duties, increased down payments and mortgage interest rates and strict purchase qualifications, as it tightens its grip on the real estate sector.

China’s cement industry reported a 32.8 per cent drop in profits last year, according to latest data from the China Cement Association (CCA). The CCA said the sector posted profits of CNY65.7bn in 2012