China's cabinet, or State Council, said Friday that it plans to enforce a 20 percent capital gains tax on the sale of second-hand homes, as well as higher downpayments and interest rates. Mainland China has tumbled more than six percent since the start of February as government interference with property prices has loomed.
While this has ripple effects — the Australian dollar has weakened — this does not appear to be the start of an economy-wide credit squeeze. Instead, it appears to be limited to the property sector.
Monday, March 4, 2013
China's prices down 6% since start of Feb
It's been a China extravaganza in the news lately. China Gets Tough on Property Sales