What's Going On With MMTec Stock Today?

MMTec, Inc. MTC shares are trading lower Monday. The stock appears to be pulling back after rallying Friday after China unveiled measures to support the property sector. New reports suggest the measures fell short of expectations.

What Happened: China on Friday announced housing measures to offer up to 1 trillion yuan ($138 billion) in funding and ease rules for mortgages, per Reuters.

The measures were expected to create 500 billion yuan worth of bank financing. China’s central bank also said it would create a 300 billion yuan relending facility for state-owned enterprises to purchase completed and unsold homes at “reasonable prices” and use them as affordable housing.

Although a Chinese housing ministry publication called it a “historic moment” for the housing sectors, others have since voiced concerns.

“Despite policymakers signaling a more supportive stance, the effectiveness of any new measures will hinge on how quickly and easily they can be implemented,” Goldman Sachs told Reuters.

Other analysts have noted that the size of the financing pales in comparison to the estimated trillions of yuan worth of housing inventory across the nation. Data shows that there was 4.2 billion square feet of new housing for sale between January and April, up 24% from last year.

“Given its limited size and the various challenges in execution, it alone is unlikely to solve the problem,” said Larry Hu, Macquarie’s chief China economist. “But it's encouraging that policymakers are moving in this direction after failures in the previous years.”

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MTC Price Action: MMTec shares were halted for volatility in early trading Monday. At the time of publication, MMTec shares were down 82.5% at $1.20, per Benzinga Pro.

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