bubble risks in china’s financial sector government official warns
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

Bubble risks in China’s financial sector, government official warns

Arab Today, arab today

Arab Today, arab today Bubble risks in China’s financial sector, government official warns

China has been discussing a recurring property tax for years
Beijing - Arab Today

China’s financial sector faces bubble risks, a government official warned on Thursday and said a property tax may be on the cards in the near future as authorities extended their efforts to reduce a worrisome build-up of debt in the economy.
The ratio of China’s financial sector to the overall economy “is the highest ratio in the world,” said Huang Qifan, deputy chairman of the economic and finance committee under the National People’s Congress, China’s largely rubber-stamp parliament.
“This is not a good thing,” Huang told a finance forum.
China’s financial sector as a share of gross domestic product was 8.5 percent in the first nine months of this year.
The government is in the second year of a crackdown on speculative investment and high corporate debt levels as it looks to defuse financial risks and a property bubble.
Authorities have been particularly concerned about speculative financing and have taken a hard line against risky, shadowbanking activities.
Progress, however, has been mixed as policy makers walk a tight rope in trying to reduce China’s years-long addiction to debt without shattering economic growth.
Borrowing rates have risen slightly and M2, or broad money supply, growth slowed to a record low of 8.8 percent year-on-year in October. But credit continues to expand faster than GDP and consumer debt is rising very rapidly.
“M2 in the United States is 70 percent of GDP, ours is over 200 percent,” said Huang.
“The excessively high M2 leads to inflation, primarily reflected in housing prices, which have risen about eight-fold in the past 10 years.”
Huang said a property tax could be on the cards in the next few years, adding it will help temper speculation in a sector that has drawn a raft of government curbs in the past year.
China has been discussing a recurring property tax for years, but public progress on the initiative ground to a halt after a very limited pilot scheme was rolled out in 2011.
“I believe (a property tax) will happen in the near future, not take 10-20 years. It could happen in the next several years,” he said.
Huang, appointed to his current post in February, is considered a leading financial expert in China and is best known for his term as mayor of Chongqing.
He also weighed in on how China manages its massive pile of foreign exchange reserves, which rose to $3.109 trillion in October.
“China has reached a stage where the foreign exchange reserves system must be reformed,” Huang said, adding that the Ministry of Finance should play a bigger role in managing the country’s foreign reserves.
The reserves currently are primarily managed by the central bank, the People’s Bank of China.
Huang said China’s forex reserves can currently only be invested in liquid foreign debt, which generates low returns.
“We want to be a true financial power. To be a financial power, we should not lend more money to other countries, but invest globally and have high and sustainable returns.”

Source:Arabnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bubble risks in china’s financial sector government official warns bubble risks in china’s financial sector government official warns

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bubble risks in china’s financial sector government official warns bubble risks in china’s financial sector government official warns

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 14:12 2016 Sunday ,06 November

Pitt seeks joint custody of children with Jolie

GMT 12:26 2016 Monday ,22 August

Britain flexes sporting 'superpower' muscle

GMT 17:49 2016 Tuesday ,29 November

Kuwait Cabinet steps down after Parliament polls

GMT 20:32 2017 Wednesday ,25 October

Pyeongchang flame to be lit in Olympia

GMT 12:52 2017 Sunday ,20 August

Apple under pressure to dazzle as market slows

GMT 17:19 2016 Sunday ,09 October

Egypt, Switzerland discuss mines clearance project

GMT 02:18 2017 Tuesday ,01 August

Sudanese president begins Kuwait official visit

GMT 02:17 2017 Monday ,09 January

Emirati gives birth using frozen ovary

GMT 02:39 2017 Thursday ,02 February

10 of thousands of Yemenis trapped in Red Sea fighting

GMT 17:22 2017 Friday ,15 September

Formula One: I'm not here to finish third, says Bottas

GMT 17:58 2016 Saturday ,22 October

Kirkuk raid offers glimpse of post-caliphate Daesh

GMT 20:01 2016 Monday ,28 November

Bomb Defused near US Embassy in Philippines

GMT 08:43 2016 Monday ,14 November

Samsung to buy US auto parts supplier Harman for $8bn

GMT 10:13 2017 Friday ,28 April

carries out last execution

GMT 22:52 2017 Tuesday ,22 August

Information minister lauds relations with Jordan

GMT 11:24 2017 Wednesday ,11 January

Swiss jailed in Singapore over Malaysia's 1MDB saga

GMT 04:49 2017 Saturday ,07 January

Bitcoin slides another 12%
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday