The slowdown indicators of the Chinese economy are multiplying: the dynamics of prices (which reached 6.4% for the June cost-of-living index) take away purchasing power from consumers, the pace of imports slows down, rates interest rates are rising and the reserve requirement rate for banks has been raised six times, limiting their ability to lend money. Now it turns out that even an expansionary tax measure, such as raising the income tax exemption threshold, has restrictive consequences on the housing market. Tens of millions of workers, who will no longer pay taxes, will however be prevented from buying a house in a municipality they do not reside in, given that in order to buy, it is essential to demonstrate that income tax is paid. This current slowdown (from 10% to perhaps 7% growth) is physiological: the economy risked overheating. And, even if the pace of imports is the lowest since the beginning of the year, the pace (+19.1% in June) is still respectable…
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China Daily
China Daily
China Daily
