Chinese policymakers are talking a big game but doing nothing of substance. Goldman.
Central level policies: Recent article from senior policymaker via Qiushi magazine highlighted focus on stabilizing market expectations within the property sector, emphasizing 1)given the significant financial asset nature of housing, effectively managing market expectations is crucial for overall stability; 2)the property industry is recognized as both a critical component of the national economy and major repository of household wealth; 3)policy easing should be decisive and aligned with market expectations to prevent prolonged cycles of speculations; 4)enhanced monitoring of key indicators, particularly property prices, shall be implemented. This follows tax cutsannounced byMOF and STA, which reduced VAT on the sale of properties held for less than two years from 5% to 3% (first reduction since the tax category was introduced in 2016), while the exemption for properties held beyond two years remains unchanged.
Yawn. They are out of ideas, which is no bad thing, because the only way to end the bust is to let the market clear, another 50% lower.
