Business
Wuhu douses housing bailout speculation
BEIJING – An East China city that has sparked attention with its housing subsidies has said the policies are aimed at dousing speculation of a potential loosening of property market controls.
The government of Wuhu, a city in eastern Anhui province with 1.5 million residents, announced Thursday that it will grant subsidies and deed tax exemptions to first-home purchasers in 2012.
The measures, which made Wuhu the first Chinese city to boost home sales since 2010, triggered speculation that authorities may lift curbs on the real estate sector, as the market has cooled since the introduction of tightening measures last year.
However, the Wuhu city government rebuffed bailout speculation on Friday, saying the policies are intended to meet consumers’ rigid demands for home purchases and attract talented people to work in Wuhu.
“The essence of these measures is to curb the property market, clamp down on speculation and satisfy the home-buying demands of those with low incomes and new residents, as well as give a boost to affordable housing projects,” Hong Jianping, the city’s deputy major, said at a press conference.
Under Wuhu’s new policies, the local government will offer subsidies ranging from 50 to 150 yuan ($7.9 to $23.8) per square meter for purchases of first homes no larger than 90 square meters.
Home buyers with more extensive educational backgrounds or professional certificates are entitled higher subsidies, a policy that the government has cited as a method to attract more talented workers.
But analysts have argued that Wuhu’s subsiding polices are intended to bail out the sagging property market, warning that more local governments may follow suit.
Housing prices in Wuhu dipped for the eighth straight month in January, with the average price standing at 5,567 yuan per square meter, down 5.68 percent from a year earlier, according to data from the China Index Academy (CIA), a leading property research institute.
“Wuhu is the first city in China to waive deed taxes and grant housing subsidies. It is really hard to convince people that they’re not just trying to rescue the market,” Zhang Dawei, chief analyst at Centaline Property, was quoted as saying by the 21st Century Business Herald.
Since 2010, China has introduced a series of tightening measures to cool down the runaway property market, including bank lending restrictions, a ban on third-home purchases and trial property taxes in the cities of Chongqing and Shanghai.
The policies will be maintained in 2012 to bring housing prices to a reasonable level, authorities said following China’s central economic work conference last December.
Housing inventories in major cities such as Beijing and Shanghai have piled up to a record high, according to 5i5j Real Estate Service Co, one of the country’s largest real estate agents.
Average property prices in China declined for the fifth consecutive month in January, a sign that efforts to crack down on speculation are working, the CIA said.
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
Business
China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
China’s new home prices fell for the 17th month in October, declining 0.5% from September, but slowing, indicating potential market stabilization amid supportive measures. Second-hand home prices showed mixed trends.
Decline in China’s Home Prices Stabilizes
China’s new home prices continued to decline in October for the 17th consecutive month, although the drop showed signs of slowing. Recent support measures from Beijing appear to be inching the market toward stabilization, as evidenced by a lighter decline compared to earlier months.
Monthly and Yearly Comparisons
According to the latest data from the National Bureau of Statistics, new home prices across 70 mainland cities fell by 0.5% from September, marking the smallest decrease in seven months. Year-on-year, prices dropped by 6.2%, slightly worse than the September decline of 6.1%. In tier-1 cities like Beijing and Shanghai, prices decreased by 0.2%, a smaller fall than 0.5% in the previous month.
Second-Hand Home Market Trends
Second-hand home prices in tier-1 cities experienced a 0.4% increase in October, reversing a 13-month downward trend. Conversely, tier-2 cities observed a 0.4% drop in second-hand prices, while tier-3 cities faced a similar 0.5% decline. Overall, recent trends indicate a potential stabilization in China’s property market.
Source : China’s new home prices slow 17-month decline after support measures kick in
Business
Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
Southern Sun reports increased earnings, attributed to growth in the hospitality sector, while China’s property market receives a boost, reflecting economic recovery and renewed investor confidence.
Southern Sun Earnings Surge
Southern Sun has reported a significant increase in its earnings, showcasing solid financial performance amid evolving market conditions. This growth highlights the company’s resilience and adaptability to changing consumer demands, positioning it well for future opportunities in the hospitality industry.
China’s Property Market Recovery
In a bid to rejuvenate its economy, China has introduced measures to boost its property market. These initiatives aim to stabilize real estate prices and encourage investment, which is crucial for maintaining economic momentum. The government’s commitment to supporting the sector reflects its understanding of the industry’s importance in overall economic health.
Broader Economic Implications
The rise in Southern Sun’s earnings and China’s proactive approach to revitalizing its property market indicate broader economic trends. Investors and stakeholders are keenly observing these developments, as they may signal recovery and growth opportunities in both the hospitality and real estate sectors. The collaboration between local businesses and governmental actions will be pivotal in shaping future economic landscapes.
Source : Business brief | Southern Sun sees earnings rise; China boosts its property market – News24
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