1 / 11

About Chinese, Hong Kong, Macau Markets during Recent Financial Turmoil

About Chinese, Hong Kong, Macau Markets during Recent Financial Turmoil. Rose Neng LAI University of Macau Cambridge University ERES 2010, June 25, 2010. Hong Kong. Hong Kong. Market demand is always strong Market segmented Not much done till May 2010: the “nine ways”

magnar
Télécharger la présentation

About Chinese, Hong Kong, Macau Markets during Recent Financial Turmoil

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. About Chinese, Hong Kong, Macau Markets during Recent Financial Turmoil Rose Neng LAI University of Macau Cambridge University ERES 2010, June 25, 2010

  2. Hong Kong

  3. Hong Kong • Market demand is always strong • Market segmented • Not much done till May 2010: the “nine ways” • More for market transparency, particularly in presale market • Note currency pegged to USD, thus can’t change interest rate by much

  4. Macau

  5. Macau • Huge economic development since 2004 due to the hospitality industry (higher GDP per capital than Hong Kong, higher gaming income than Las Vegas) • Dropped since April 2008 because of slow down in expansion, and Chinese government policy to reduce tourist • Boom again, surprisingly • Not much done except • The promise of 19,000 units of public housing by 2012 • More transparent information releases • More guidelines on LTV ratios and rationing

  6. China

  7. China • Always high demand for housing • Government encouraged private housing • Coupled with better economy • Bubbles in first tier cities that have not burst

  8. Government Intervention • Capital Reserve • ↑ in Jan, Mar, Apr, May 2008 • ↓ in Sep 2008 • LTV Ratio • Explicit restriction in Aug 2008 • Interest Rates • ↓in Sep, early and late Oct, late Nov 2008 • Related Tax • ↓in Oct 2008 (deposit tax, property sales tax, property tax) • ↓in Oct 2008 • Other Policies such as First Home Program, Measures to enhance housing

  9. Government Intervention in 2010 • Dec 2009: measures to control speculative activities, and land bank • January: (1) down-payment of second home no less than 40%; (2) Increase Capital reserve • March: Land control • April (gradually): (1) prohibition of mortgages for speculative purpose, (2) initial payment of 2nd home no less than 50%, (3) no mortgage for 3rd home, (4) new definition of second home (counted towards households versus individuals) • May: Increase Capital reserve

  10. What has happened? • Hot money….. for better investments • Spillover from China to Hong Kong and Macau

More Related