China Tightens Rules To Cool Property Market

HONG KONG - Continuing its long, and as yet futile fight to dampen real estate speculation, China has raised costs for buyers of second homes and commercial property.
The move, announced jointly late Thursday evening by its central bank and and banking regulator, the People’s Bank of China and the China Banking Regulatory Commission, is the latest indicator of the government’s anxiety over a property bubble that it has so far failed to deflate despite numerous attempts over the last two years.

Stocks rise as real estate developers gain

MAINLAND stocks rose today, with real estate developers and some non-ferrous metals gaining ground. The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, gained 0.56 percent, or 30.34 points, to close at 5,485.01. The Shenzhen Composite Index, which covers the smaller mainland stock market, added 0.48 percent, or 7.22 points, to 1,506.23. Among the stocks in the Shanghai Composite index, 379 rose, 390 fell and 73 were unchanged.

China real estate: Down payment ratio may rise

China's central bank is mulling to lift the down payment ratio for buying a second house to 40 percent, in an effort to curb speculations in the country's housing market, Guangzhou Daily reports, citing an unnamed source. The report quotes people familiar with the case as saying, the central bank will soon increase the down payment ratio for their second house mortgage to 40 percent from the current 30 percent, and from 40 percent to 50 percent for business properties. The source says this is the first time that the central bank has made it clear to increase the down payment ratio to 40 percent. The central bank has required to lift the down payment ratio for buying a second house, however, no standard has been set. Commercial banks usually charge a ratio of 20 to 30 percent.

FPE marches into China RE market

It is becoming a trend for foreign private equity funds to invest in Chinese real estate projects, according to a report published by Zero2IPO. Zero2IPO analyst Chu Wanglin holds that three opportunities; the 2008 Beijing Olympic Games, the 2010 Shanghai World Expo and the anticipation for appreciation of the yuan, have boosted the pace of foreign private equity funds investing in China.

China Battles Inflation

HONG KONG - While investors around the world are looking for a reduction in America's key interest rate next week, inflation-wracked China went the other way on Friday. For the fifth time this year, the central bank said it would raise its benchmark rate, in this case following a report of price increases at an 11-year high rate. With its currency kept artificially low, however, China seems destined to suffer continued inflation as money pours into the country as a result of its growing economy and trade surplus.

China's Private Business Leaders Optimistic

China’s economic development has progressed to a stage at which it is mature enough to overcome deepening anxieties around the world arising from the recent safety problems of Chinese manufactured products. The radical transformation of its economy over the past three decades has helped it resolve similar crises, experience demonstrates. For weeks, top Chinese officials spared no effort trying to debunk a litany of accusations from the United States and Europe over a long string of safety problems found in products made in China: toys, toothpaste and clothing involving hazardous materials or sometimes lethal ingredients.

China to start work on eco-city in new year

DALIAN, China (Reuters) - China will start building the country's first eco-city in the new year and plans four other radical new urban developments as it seeks to tackle pollution, the head of the firm designing the projects said on Saturday. Peter Head, Director of engineering firm Arup, said they will not need subsidies to make money because developers spend less on infrastructure and have been given generous land use rights on the crowded east coast where real estate is at a premium.

Wong Chung-yam In The Spotlight

Chinese investors swarmed to Jin Tai following an announcement on July 9th by the company that the elder Wong had agreed to fold his lucrative real estate properties into the company in exchange for 7 billion new Jin Tai shares, greatly expanding its existing share capital base. The elder Wong owns 80% of Towercrest Group, his Beijing-based flagship holding company, which has a combined 22.8% stake in Shandong Jin Tai through a subsidiary prior to the pending share issue. He bought into loss-making Jin Tai back in 2001, and Towercrest is its largest shareholder.

China's Housing Price Hike

Beijing: land in short supply "The long procedure of land marketing results in the short supply of available land in Beijing," said Liu Weixin, a researcher with the Chinese Academy of Sciences. "And we must keep in mind that land is a limited resource that cannot be supplied infinitely." Furthermore, as the national political and cultural center, a great number of people flood into Beijing annually and fuel the housing market. Many graduates also choose to work and settle down here. "Huge demand and short supply has caused a price hike here," Liu observed.

China Real Estate law amended to back state expropriation

China's top legislature amended a real estate management law Thursday, allowing the government to expropriate institutional and private houses on state-owned land for public interests. The Standing Committee of the National People's Congress (NPC) voted at its legislative session that ended on Thursday to add one clause to the General Principles of the Law on the Management of Urban Real Estate, which allows the expropriation for public interests while demanding compensation to owners. The new clause also underscores that the legal rights of the owners must be protected and residence conditions of private owners after resettlement must be guaranteed.