MONEY MASTER

Chinese property firms are  returning to international bond markets at their fastest pace in nearly four years , signalling a tentative rebound in investor confidence after a prolonged real estate crisis. What Happened In just  two days ,  three Chinese property developers  issued or marketed offshore bonds — marking the  busiest issuance week since mid-2022 , according to Bloomberg data. The deals include: Yuexiu Property Co Ltd China Overseas Grand Oceans Group Ltd Both marketed  offshore yuan-denominated notes , even tapping the market on a  Friday , typically avoided by issuers Dalian Wanda Commercial Management Group Co Sold a  US$360 million bond , its  first international issuance in three years Why Sentiment Is Improving Several developments helped lift market mood: China Vanke Co Ltd  made progress in distancing itself from earlier financial stress New World Development Co Ltd  also took steps to stabilise its balance sheet...

New Property Tax Reduction for Low-End Homes Hong Kong will cut stamp duty to HK$100 ($12.80) for homes valued at HK$4 million ($515,000) or below . Previously, transactions between HK$3M-HK$4M were taxed up to 1.5% of deal value . Finance chief Paul Chan announced the move in his 2025 budget speech. Hong Kong’s Struggling Real Estate Sector Property prices have plunged 27% since 2021 , nearing  2016 levels  due to  high borrowing costs, weak economy, and oversupply . Despite scrapping all extra stamp duties & relaxing mortgage rules last year, home prices still fell 5% in 2024. The latest tax reduction will benefit ~15% of all property transactions, according to government estimates. Government’s Property Market Dilemma Hong Kong’s economy is heavily reliant on property revenue , making real estate stabilization crucial. Previous policy changes failed to stop the downturn, leading to this new tax cut targeting budget home buyers. Summary: Stamp duty cut to HK$100 for...

Key Takeaway: Shanghai becomes the first major Chinese city to introduce tax incentives aimed at rejuvenating its struggling property market, signaling a potential wave of similar policies across 'Tier One' cities. Highlights of Shanghai's Tax Incentives Value-Added Tax (VAT) Exemption: Sellers of existing properties are exempt from VAT if they hold the property for over two years . Deed Tax Adjustment: The threshold for levying deed tax has been raised from properties over 90 square meters to those over 140 square meters . Example: For a 10 million yuan apartment , deed tax is reduced to a minimum of 100,000 yuan , down from 300,000 yuan . Elimination of "Ordinary" vs. "Non-Ordinary" Housing Taxation: Properties larger than 144 square meters will no longer face higher taxes. Market Context Property Sector Challenges: The property market slump , once contributing 25% of China's economic activity , continues to weigh on growth. In October, resale ...

More than 700 Swedish companies declared bankruptcy in September, marking a 17% increase from the previous year, according to data from credit reference agency Creditsafe . This uptick follows a 3% annual decrease in bankruptcies reported in August, signaling a concerning trend for the nation's economy. Real Estate Sector Hardest Hit The real estate sector faced particularly severe challenges, with bankruptcies in this industry more than doubling during the month. Despite a general sense of optimism regarding an economic recovery—fueled by the central bank's decision to reduce borrowing costs—this positive sentiment has yet to manifest in increased business activity. Henrik Jacobsson , CEO of Creditsafe in Sweden, noted, “This uncertainty continues to put pressure on businesses in Sweden.” Ongoing Economic Struggles Jacobsson highlighted rising unemployment and the necessity for many companies to lay off staff as critical issues. He pointed out that investments in the Swed...