Dec. 10 (Bloomberg) -- China issued policies to curb property speculation after home prices rose at the fastest pace in more than a year and Premier Wen Jiabao pledged support for affordable housing. The government will impose a sales tax on homes sold within five years of their purchase, increasing the time period covered by the charge from two years, the State Council, the nationâs cabinet, said yesterday after a meeting chaired by Wen. China reduced the penalty period of the tax to two years from five in January of this year to stem falling prices. A record $1.3 trillion of bank lending that helped revive Chinese economic growth to 8.9 percent in the third quarter has also fueled concerns of a bubble in the nationâs property market. Home prices in 70 major Chinese cities climbed at the fastest pace in 14 months in October, according to government data. âThe Chinese central government wants to gradually control the bubble in the real estate market,â Andy Xie, former Morgan Stanley chief Asian economist, said by phone. November sales for China Vanke Co., the nationâs biggest developer by market value, rose 46.5 percent from a year earlier to 5.23 billion yuan ($766 million), the company said this week. Sales in the first 11 months rose 36.2 percent. A measure of property developers traded in Shanghai has more than doubled this year. http://www.bloomberg.com/apps/news?pid=20601087&sid=aoBHqPr_OJ68&pos=3 Seems, the Chinese have learnt some things...
cant beat the combo of commie/capitalist systems in setting policies. i wonder how many people cashed out from jan until now "penalty" free.
China is anything but communist. I think you do not understand what communism means. If you go to china today and utter commie or "gong chan dang" as it is said in mandarin, people will just laugh at you
Speculating was use to be crime in China 10, maybe 20 years ago, Chinese government used to send speculator in jail for 3 year labor camp, Chinese are bunch wackos, lol, look what did they get into now without respecting their own law, most Chinese don't realized that their constitution hasn't changed that much to protect personal property, except some by-laws which changed quite often, almost like daily. lol
the way policies are set its 100% communist albeit its way more relaxed than central planning of USSR. been to china many times, only people laughing are the ones banking it under the cover of commie enterprise or the ones allowed to prosper for now.