Monday, April 1, 2013

Beijing is only treating the symptoms, not their cause





Last week the authorities in several of China's biggest cities slapped a 20 per cent capital gains tax on homeowners who sell their properties.


Their latest attempt to rein in runaway property prices comes just days after regulators launched a new crackdown on China's ballooning shadow banking system.


At first glance, these twin initiatives make it look as if Beijing is finally getting to grips with the financial risks that threaten China's future growth trajectory.









via Business feed http://www.scmp.com/business/article/1204293/beijing-only-treating-symptoms-not-their-cause

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