China housing stimulus
China’s new tax exemption on house purchase and mortgage deposits reduction may provide a real stimulus for home buying.
The Ministry of Finance, the State Administration of Taxation and the People’s Bank of China, the country’s central bank, made the synchronous move to announce a series of new measures to boost the domestic real estate market, which had shown signs of slowing amid the global financial turmoil.
Nie Meisheng, the Chamber of Real Estate of the All-China Federation of Industry and Commerce director, said, ‘The policy is concentrated on tax reduction and relaxing restrictions on financial institutes to give loans to private homebuyers.’
The chamber was one of the advisors prompting the promulgation of the policy.
Nie said the policy, aimed at benefiting home buyers, rather than bailing out property developers, can woo potential purchasers’ confidence.
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Source: China View