Saturday, October 23, 2021

How China’s bubble began - btbirkett@gmail.com - Gmail

How China’s bubble began - btbirkett@gmail.com - Gmail

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Beijing is now trapped in a speculative marketof its own making. An obvious exit, as Matthew Brooker notes in Bloomberg Opinion, would be to institute a property tax. At a stroke of the pen, this would discourage the purchase of multiple homes by raising their so-called “carrying costs” while offering local governments a stable source of revenue.

But Beijing seems to have balked at this solution. The risks of antagonizing local governments and middle-class homeowners are apparently too high.

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