Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




POLITICAL ECONOMY
China's yuan currency hits fresh record high
by Staff Writers
Shanghai (AFP) Oct 26, 2012


Hong Kong announces measures to cool property market
Hong Kong (AFP) Oct 26, 2012 - Hong Kong announced Friday it will raise real-estate purchasing and resale costs to cool its overheating property market down, in a move targeting non-local buyers and speculative activities.

The prices of small and medium sized residential flats in the southern Chinese city, famous for its sky-high rent, surged 20 percent for the first nine months of the year, prompting the government to take action.

The new measures include the increase of special stamp duties for properties re-sold within the first three years of its purchase and imposing an extra 15 percent transaction cost on non-local buyers and local and foreign companies.

The measures "targets speculative activities, and for most genuine homebuyers it would not affect them because they won't be reselling in a short period of time", said Financial Secretary John Tsang.

The extra 15 percent transaction cost "will cause inconvenience to some non-local buyers. We hope that they will understand that this is an extraordinary measure introduced in exceptional circumstances," Tsang said.

The new measures will go into affect on Saturday.

Tsang attributed the substantial increase in the demand for property to low interest rates, adding that the city's economy is showing signs of slowing down due to a weak US market recovery and Euro sovereign debt crisis.

"It is apparent that the property market and the local economy are heading in different directions," he said.

Tsang also acknowledged that the city was in short supply of residential units.

Hong Kong in August unveiled a series of measures to cool the red-hot property market, including to provide around 65,000 new units on the market in the next three to four years.

"Maintaining a healthy stable property market will be our ongoing endeavour," Tsang said.

China's currency hit a record high against the US dollar for the second straight day on Friday, amid US political pressure and growing confidence in the domestic economy, analysts said.

The currency touched an intra-day high of 6.2380 to the dollar at the open, marking the highest level since 1994 when the country launched its modern foreign exchange market.

Analysts said China may be allowing the yuan to appreciate to defuse criticism that the unit is grossly undervalued, ahead of the US presidential election on November 6 and an upcoming US government report on exchange rates.

The yuan closed at 6.2489 to $1.0 on Friday, weakening from Thursday's close of 6.2417, despite earlier touching the record high, according to figures from the China Foreign Exchange Trade System.

"There are expectations that Beijing may use this as a gesture to the United States ahead of the presidential election and the upcoming exchange rate report," Jiang Shu, an analyst at China's Industrial Bank, told AFP.

The US Treasury Department issues a semi-annual report on exchange rate policies that addresses China, among other countries.

The US Treasury said earlier this month that it would put off publishing the report to Congress so it could "assess progress following the G-20 finance ministers and central bank governors meeting next month."

China's exchange rate has been a long-running source of friction with the United States and presidential hopeful Mitt Romney recently vowed to brand the country a currency manipulator.

When the US Treasury report was last released in May this year it stopped short of accusing China of manipulating its exchange rate, but warned its "significantly undervalued" currency was a brake on global growth.

Analysts said expectations China's economy, which grew an annual 7.4 percent in the third quarter, might have hit bottom were also helping the currency to strengthen.

Capital inflows sparked by the latest round of US quantitative easing stimulus have also contributed to the yuan's recent strength, they said.

"China's economy has brought about hopes of a recovery. People are becoming more confident and expecting appreciation of the currency," Lu Ting, China economist at Bank of America Merrill Lynch, told AFP.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
Hague: Britons 'disillusioned' with EU
Berlin (UPI) Oct 25, 2012
Britons are "disillusioned" with the European Union at a time when it's seeking a sizable budget increase, British Foreign Secretary William Hague says. The top British diplomat, speaking Tuesday at the Korber Foundation Conference in Berlin, said that while Britain wants to continue to play a leading role in the EU, "public disillusionment with the European Union in Britain is the deep ... read more


POLITICAL ECONOMY
Fukushima fish radiation may indicate leak: study

Clinton hails Haitian post-quake reconstruction

Top Italy scientists resign in protest at quake ruling

Japan's radiation monitoring unreliable: Greenpeace

POLITICAL ECONOMY
A new take on the Midas touch - changing the colour of gold

Northrop Grumman Matures Laser Threat Terminator Technology to Address Emerging Threats

US DoE's Ames Laboratory improving process to recycle rare-earth materials

Droplet response to electric voltage in solids exposed

POLITICAL ECONOMY
Helping North America's marine protected areas adapt to a changing climate

Australia pumps $1.83 bln into food bowl river

Suez reports operating profit fall on delay to Melbourne water plant

Genetic Patterns of Deep-Sea Coral Provide Insights into Evolution of Marine Life

POLITICAL ECONOMY
Opposite Behaviors? Arctic Sea Ice Shrinks, Antarctic Grows

Italian snow levels, glaciers retreating

New understanding of Antarctic's weight-loss

Australia's Antarctic runway melting

POLITICAL ECONOMY
Formula unlocks secrets of cauliflower's geometry

Gazans produce fish and vegetables in tiny rooftop spaces

Food to combat conflicts at global fair in Italy

Rice agriculture accelerates global warming

POLITICAL ECONOMY
NY scrambles to gird for Sandy, hopes to miss its wrath

Hurricane Sandy heads for US after killing 59 in Caribbean

New York declares emergency ahead of Sandy

Elderly man dies as earthquake hits southern Italy

POLITICAL ECONOMY
Eight killed in militia attack at DR Congo wildlife reserve

Mobile phone app developers take on Africa

Sudan accuses Israel of air raid, threatens action

Morocco trial of 23 Sahrawis postponed indefinitely

POLITICAL ECONOMY
Grandmas made humans live longer

How fear skews our spatial perception

New Stanford analysis provides fuller picture of human expansion from Africa

New images could crack ancient writings




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement