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Vacancy tax is a short-term solution to Hong Kong’s long-term housing shortage crisis

The Hong Kong government plans to introduce a vacancy tax on empty new flats to pry open supply bottlenecks by imposing fines on developers for hoarding new homes. Under the proposed legislation, a tax equivalent to twice the estimated annual rental value will be levied on flats that remain unsold after 12 months of receiving an occupation permit. According to the Rating and Valuation Department, the preliminary findings in the Hong Kong Property Review 2019 indicate that the vacancy rate of… Source link

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Property 

Hong Kong’s housing crisis can’t wait for long-term solutions

The government’s recent unveiling of the costs for its Lantau Tomorrow Vision proposal has divided the city: one half is concerned at allegedly exorbitant costs, although some estimates say the project will most likely turn in an eventual surplus; the other half seems to see it as a panacea to systemic housing issues. The official pitch is that the project is a long-term solution, designed to deal with Hong Kong’s expanding population and to relieve the city of its land shortages. All’s fair… Source link

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Vietnam 

Banks struggle to lure long-term capital – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News HÀ NỘI – Banks have to mobilise long-term capital at high costs by issuing certificates of deposit (CD) in Vietnamese đồng with high interest rates to lure depositors, causing concerns about a domino effect on lending rates. At Southeast Asia Bank (SeABank), when customers apply for a 24-month CD valued at a minimum of VNĐ100 million (US$4,290), they can enjoy a fixed interest rate of 8.4 per cent per year, while a 36-month CD can bring them a fixed interest rate of 8.6 per cent. State-owned Bank…

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Can China boost short-term growth while maintaining long-term prospects? Li Keqiang may have the blueprint

Premier Li Keqiang’s government work report, unveiled on the opening day of the National People’s Congress, argued that Beijing would do well to safeguard near-term growth without undermining the long-term sustainability of the economy.The question is: can Beijing achieve this daunting task against a challenging local and global backdrop, and with a smaller policy toolkit to deploy compared with five or 10 years ago?Let’s take a look at what has been proposed for the task. First, the government… Source link

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Hong Kong government must consider all possible options to address long-term land supply

The Hong Kong government recently accepted the recommendations proposed by the Task Force on Land Supply, providing eight options and strategy, which it considers worthy of further studies and implementation.These options – three short-to-medium term and five medium-to-long term – can provide 3,225 hectares of land in total. The former includes developing brownfield sites, tapping into private agricultural land reserves in the New Territories and alternative uses of sites under private… Source link

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Financial markets could be in for more pain, but sticking to a long-term position may be worth it

No pain, no gain. That’s the theory anyway, and something to remember for those whose New Year resolution was to get fit. For the markets, the question is: will perseverance reward investors battered by losses and volatility or is there more pain to come? Fretting markets got ahead of themselves in December, fearing that a global recession was knocking at the front door despite the lack of any major signs that a material economic slowdown was imminent. Equity markets have rebounded in the first few weeks of 2019 as investors…

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China 

US-China trade war ‘truce’ should be used to find long-term solution to disputes, experts say

Establishing a framework for future trade relations is more important than China simply promising to buy more US goods, according to a former senior Chinese official, but US business leaders said Beijing would not be allowed to drag its feet in coming up with a deal to please Washington. At their meeting in Buenos Aires over the weekend, officials from the two countries agreed to a 90-day “truce” in their trade war. While the agreement includes a ban on any additional tariffs being imposed in the period, the White House…

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China 

Is Donald Trump’s short-term game plan enough to spoil China’s long-term economic, geopolitical strategy?

The economic relations between the United States and China are in a state of war on multiple fronts: trade, technology and over the broader economy. Next up could be a fiscal war over monetary policies, as the two powers react to the economic fallout from their conflicts. If so, the size of China’s fiscal purse could give the country an advantage. Economies in Europe and elsewhere that are getting trampled by the battle of the two are in no better position to match China’s ability to use its fiscal policy…

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China, other Asian markets are still a better long-term bet than developed economies, so don’t follow the herd

Watch stock markets patterns long enough and you pick up aspects of human psychology. The term “herding” is one example – the “herd instinct” mentality can cause people to gravitate towards the same or similar securities based almost solely on the fact that others are buying or selling them. Put another way, no one likes to be the first one on the dance floor. That’s particularly relevant now, as beaten-down Asian markets may be prompting investors following the flow to sell down their holdings. Asian equities have lost more than 15…

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Vietnam 

Banks look abroad in rush for long-term capital – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News HÀ NỘI — Struggling to attract domestic funds, banks are rushing to seek foreign capital ahead of the central bank’s tightened policy on medium- and long-term lending early next year. According to the State Bank of Việt Nam (SBV) regulations, short-term funds for medium- and long-term loans at banks will be reduced from the current 45 per cent to 40 per cent from January 1, 2019. Banks will also need more capital to meet a capital adequacy ratio (CAR) of 8 per cent in…

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