China will give local governments autonomy to decide on the actual rate of a property tax to minimize its potential impact on home prices, a senior Chinese lawmaker was quoted as saying.
Ying Zhongqing, deputy director of the financial and economic affairs committee at the National People's Congress, said the central government will set a few tax rate brackets for local governments to choose from.
China's property investment accelerated in the first two months, driven by strong hinterland demand, while land and property sales dropped, and this will weigh on future trends, said National Bureau of Statistics head Mao Shengyong. Industrial output rose 5.3 percent from a year earlier, the worst start to a year since 2009, data showed. But officials explained it was due to seasonal factors.
Overall, mainland property stocks fell. Sunac China (1918) lost 5.67 percent to HK$34.10.
CIFI's (0884) net profit rose 12 percent year-on-year to 5.41 billion yuan (HK$6.31 billion) in 2018. Shares fell 7.3 percent to HK$5.33.