KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Beijing and Shanghai have announced new tax incentives to stimulate home purchases, aiming to revive China's struggling property sector, which has long been a key driver of economic growth.
Facing a persistent slowdown in the property market, Beijing and Shanghai have introduced value-added tax exemptions for homeowners selling properties held for over two years. The cities also raised the threshold for deed tax exemptions to properties larger than 140 square meters, up from 90 square meters.
These measures follow recent nationwide tax breaks on home and land transactions, reflecting an urgent need to stabilize a market that once contributed nearly a quarter of China’s GDP.
Despite these efforts, property stocks remain under pressure, with China’s real estate share index down 1% this week, and Hong Kong-listed mainland developers showing little movement. Analysts caution that broader consumer and investor confidence issues continue to weigh on the market.
Additional Measures and Analyst Insights
- Recent Policy Adjustments:In September, China cut the minimum down payment ratio to 15% and relaxed home purchase restrictions, signaling a policy pivot to boost housing demand.
Analyst Outlook:
- Xu Tianchen, Economist Intelligence Unit: "Policy changes have shown early signs of success, but sustained bold measures are needed to rebuild confidence."
- Zhang Dawei, Centaline Property Agency: "The property market in major cities appears to have stabilized, especially in tier-one and tier-two cities."
- Bruce Pang, JLL: "Policymakers must tackle residents' economic and income growth expectations and stabilize housing price outlooks to reignite demand."
Simplified Tax Rules
- Elimination of distinctions between ordinary and non-ordinary housing for value-added and personal income taxes in property sales.
- “Non-ordinary” housing, previously subject to higher taxes, now benefits from equal treatment.
Bottom Line: While the measures offer some relief, sustained and bold policies are necessary to restore confidence in China’s property market and address broader economic concerns.
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