China announced yesterday to cut the home purchase deed tax to 1% for buyers of first and second homes of 140 sqm and below, from a current level of as much as 3%. The tax cut will take effect Dec. 1, according to the Ministry of Finance. The new policy also applies to Shenzhen, Beijing, Shanghai, and Guangzhou. At present, in Shenzhen, the deed tax for the second home generally depends on the size of the home. If the area of the home is less than 90 sqm, the deed tax is usually 1% of the total housing price. The deed tax for apartments larger than 90 sqm ranges between 1.5% and 3%