Moves to Cool Real Estate Market Hit Chinese StocksMarch 4, 2013 @ 8:13 AM EST
The big news in the overnight markets was China's efforts to dampen the country's real estate market. Having learned from the real estate/mortgage crisis in the U.S., the Chinese have been attempting to slowly cool off speculation.
In response to the announced measuere, the Shanghai Composite Index fell 3.67% on Monday, which its biggest one-day decline since August 2011. According to reports, the pullback was driven by a selloff in the property developers following the government's recent decision to implement additional measures to cool the market.
The measures being implemented to try dampen housing market gains include higher down payments and mortgage rates in cities where prices have risen too quickly, higher transaction costs, increased qualification requirements, along with a stricter enforcement of a 20% capital gains tax on the sale of used homes (which is up from the current rate of 1% - 2%).
iShares China - Last 12 Month
Wondering what your short-term risk management approach should be right now? Let Dave M. walk you through how the new Daily Decision system works (a 100% rules-based system designed to guide your risk management strategy) Click Here to see Dave’s latest video presentation on the “Adaptive” Daily Decision System
Remember, you are in control your email alerts! You can receive alerts for more than 25 free research report alerts including: The “10.0” Report, The Insiders Report, ETF Leaders Report, and The Focus List.