It looks like China has the Western disease. They cannot quite bring themselves to burst a bubble. You see, there is no property tax in China, so a lot of wealthy people buy homes and just sit on them. They don't even rent them out so they can stay pristine. It's like a property savings account.
The carrying costs are low..due to low interest rates and no property tax. Well the Chinese government who has always been tough and heavy-handed with speculators in the past said the tax was a-coming. Not fun if your holding half a dozen apartments in Beijing. God forbid- you may to sell one of them.
Well they may have blinked.
Tonight there are reports that the tax would be delayed for three years. Shares are soaring on the Shanghai exchange, led of course by property companies.
No one has the guts to kill or even pluck this goose until the dang thing is so big, that it plucks us!
DID CHINA BLINK?
