China has a lot of govt funds and resources to control such volatility, wonder if they will use it. They did in 1997 to help HK against Soros and made Soros lose big.
The Hang Seng and Shanghai Composite are both down 50% relative to their 2008 highs. The S&P 500 is up 150% relative to its 2008 high. The PBOC succeeded in stopping the finance wizards from engaging in reckless speculation while the Federal Reserve failed miserably.
Applying the 40h week would also do wonders for youth unemployment and also national consumption.
Serious question, isn't this the best time to invest into china stocks/funds?
A property tax is probably a good thing, but I doubt it would be given to provincial governments. That would give them too much autonomy and make central control harder. It's more likely that the tax is collected centrally and then distributed to the provinces based on population size or GDP, to redistribute more money to poorer western provinces.
From what I read a factor that inhibit property tax is that quite a number of property owners that bought property a looong time ago or given by the state as retirement couldn't afford the tax, especially if it is located on Tier 1 cities. I heard Hang Zheng the one that discouraged it.
Certain categories can be grandfathered into the tax. If you bought the property a long time ago on the open market and can't afford the tax, then sell it. You'll make an excellent profit on your investment. If the state gave you the property, then the state gave you the property - any transfer of ownership or inheritance means whoever receives the property pays the tax as if it was bought on the open market.
What is the constituents in this index? since I know its not the entire stock market fell 14% in one day.
