Golden Week property crackdown spreads from major cities
Introducing the Asia Times editorial picks of important and market-moving stories from Chinese-language media
The crackdown on property speculation in Beijing, Guangzhou, Shenzhen and 16 other major cities is to spread to smaller municipalities, Sina Finance said on Friday. Cities such as Fuzhou, Dongguan, Shijiazhuang and Qingdao — all seeing a surge in housing prices — will be next to feel the bite of stricter mortgage rules and purchase limits, analysts say. The widening government campaign to tackle property speculation targets non-local buyers so the price controls will spread to other areas, according to Zhang Dawei, chief analyst at Centaline Property.
Estate agent blacklist only first step: Xinhua
The recent blacklisting of 45 property companies and agencies is only the first step to combat errant real estate practices, Xinhua news agency said Thursday, citing the government’s commitment to the “healthy and stable operation” of the property market. The blacklisted entities were all from “red-hot” residential markets, such as Beijing, Shanghai, Nanjing and Shenzhen. The realtors were accused of practices such as false advertising and “creating anxiety surrounding the housing market.”
Yuan in IMF basket to aid global stability: Xinhua
Including the yuan in the International Monetary Fund’s Special Drawing Rights basket will support global economic growth and financial stability, Xinhua cited IMF deputy managing director Zhang Tao as saying. However, the yuan won’t become the world’s reserve currency anytime soon because it has much to do in reforming its economy, US Treasury Secretary Jacob Lew said, according to CNS.
Nanjing property sales slump on crackdown
Zhuhai, Nanjing and Xiamen joined a flurry of other municipalities in tightening mortgage rules and limiting property purchases in the past week in what is becoming a widespread crackdown on speculators, Beijing Morning Post reported Thursday. The three join 12 other cities that have announced tougher regulations to curb surging house prices. Nanjing on Thursday limited purchases by locally registered single adults to stop couples faking divorce to speculate in property, the paper said. Nanjing housing sales dropped 30% last week after the city released its first round of restrictions on property purchases, according to the Nanjing Municipal Housing, Land and Resource Administration.
Education key to China’s growth: World Bank
The World Bank is optimistic about China’s long-term economic development because its human resources offer the opportunity to improve productivity through investment in education, Sina Finance said Wednesday citing discussions at a meeting between the bank’s chief economist Paul M. Romer and its president Jim Yong Kim the previous day. The bank forecasts China’s gross domestic product will grow 6.7% in 2016 and 6.5% in 2017, according to Phoenix Finance.
Baosteel CEO says more industry mergers ahead
Baosteel Group’s merger with Wuhan Iron & Steel Group will not be the last in the nation’s steel industry, Baosteel Chief Executive Officer Chen Derong told Xinhua on Wednesday. The merger is a “first step in change in strategy” for the steel industry, Chen said. It’s a shift from addressing a problem of “sufficiency” to one of “quality,” he said.
Almost 4,000 companies join exchange this year
Almost 4,000 companies this year joined the National Equities Exchange and Quotations Co., the bourse for small to mid-sized firms commonly known as the New Third Board, Xinhua said Wednesday. New Third Board’s market capitalization of 3.5 trillion yuan (US$500 billion) is two-thirds of the Shenzhen Stock Exchange’s ChiNext board for smaller companies, the report said.
Shenzhen, Guangzhou join property crackdown
Shenzhen and Guangzhou will force buyers of second homes to put down 70 percent of the price, joining efforts to damp property speculation. The rules were published Tuesday on the municipal governments’ websites. They will also limit loans for third homes.
Stimulus spending fails to lift northeast: Caijing
Government-run projects and cash infusions into state-owned enterprises in northeast China are the wrong way to revitalize the region, Caijing said Tuesday. Around 1.6 trillion yuan had been earmarked for 127 projects in the region through August this year under the National Development and Reform Commission. Analysts said such a centrally planned effort won’t work. The market-based methods of Guangdong, Zhejiang and Jiangsu are a better model, said Liu Shijing, former deputy director of the State Council Development Research Center.
Nanfang Black Sesame fails quality test — again
Nanfang Black Sesame Group has failed food quality tests for the second time this year, with some of its products containing E. Coli bacteria that can cause food poisoning, according to a report by Sina News that cited a Sept. 29 finding by the China Food and Drug Administration. Authorities found similar issues with the company’s black sesame products in January this year, according to the report.
Shanxi coal output slumps 20% over past year
Shanxi, China’s biggest coal producing province, cut output of the fuel by 20% in the past year, Xinhua said Tuesday. The province has shut mines and also given close to US$142 million to six major coal enterprises to reduce capacity.
B2B apartment rental needs regulation
Business-to-Business apartment rentals is a trillion yuan market that involves 400 million people, according to Xinhua. What it doesn’t have is a regulator and that’s way overdue, it said on Tuesday.
住房公租领域现B2B 公寓 万亿级市场仍待规范
PBOC tightens electronic money transactions
PBOC will require banks to limit the number and size of daily transactions of new customers, Xinhua said Tuesday. The rule will come into effect on Dec. 1. A person will be allowed to open only one account with a bank and can cancel any transaction within 24 hours.
ZTE tops iPhone in Russian smartphone market
ZTE unseated Apple Inc. to become the largest supplier of smartphones in Russia after Samsung Group, with a 9.4% market share, China News said Tuesday. Chinese smartphones accounted for more than 30% of Russian sales in July for the first time, the report said, citing Russian handset retailer Svyaznoy.
Property: opening salvo in phony war?
Beijing and eight other cities rolled out market-cooling measures over the past four days in what analysts said was a warning to end the rampant and often illegal speculation in property prices, 21st Century Business Herald reported Tuesday. The policies including increased supply of land and a tightening of mortgage rules. However, Centaline Property’s chief analyst Zhang Dawei said only the steps by Beijing and Hefei could be seen as “the real deal,” including the capital’s pilot project to set ceilings on prices at various stages of the development process to limit the scope for speculation.
Shenzhen strugglers turn to bricks & mortar
Seventy-three struggling non-real estate companies on the Shenzhen Stock Exchange have bought, transferred, sold or mortgaged properties this year, according to a report by China Finance Information on Monday. Tianhe Defense Technology and China Greatwall Computer (Shenzhen) are among the companies that have all suffered declining revenue or are on the verge of delisting, it said. Some, like Hongfu Securities, have already left China’s second-biggest bourse, it said.
Premier hosts Portugal’s Colonial Club in Macau
Li Keqiang arrives in Macau on Oct. 10 for a two-day forum to promote ties with Portuguese-speaking countries, Xinhua said Monday. The former Portuguese enclave will host delegations from Brazil, Angola and Mozambique, as well as one led by Prime Minister Antonio Costa.
By Lin Wanxia, Poo Yee Kai & Benny Kung