Providing guarantees to loans made to low income people who shouldn't be buying homes. Banks love CMHC because it takes all the risk away. Ultra-low interest rate for the masses!!!
Remember Harper's 40-year, 0-down mortgages? All guaranteed by CMHC
Trade War with China
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Providing guarantees to loans made to low income people who shouldn't be buying homes. Banks love CMHC because it takes all the risk away. Ultra-low interest rate for the masses!!!
Remember Harper's 40-year, 0-down mortgages? All guaranteed by CMHC
Will the target growth rate be lowered or totally thrown out? Could be the first.
Base metals, commodity traders await what other decisions are made stimulus wise.
Key meeting predicted to help bolster economy
By WANG YANFEI/CHEN JIA/XIN ZHIMING | China Daily | Updated: 2018-12-18 07:30
[Photo/VCG]
China is expected to enact stronger measures, such as additional tax cuts and incentives for consumption and investment, to bolster the national economy next year, a stance that may be clarified at the annual priority-setting Central Economic Work Conference, analysts said.
The authorities have not said when the conference will be convened, but generally it is held in December.
The Political Bureau of the Communist Party of China Central Committee held a meeting on Thursday to discuss economic work for next year. During the meeting, the leadership agreed that there have been changes in the international and domestic situation, and the country will make efforts to stabilize economic growth while continuing to carry out reform and opening-up.
China faces some headwinds for growth next year, such as downward pressure from an easing real estate sector, shifting of the policy focus to quality of growth, financial regulatory tightening and fallout from China-US trade disputes, said Chen Xingdong, chief economist at BNP Paribas China.
In the long run, the country's pursuit of high-quality growth will benefit its economic development and its urbanization policy. If implemented well, it will contribute about 1 to 2 percentage points annually to GDP growth, he said.
"In the short term, growth stabilization remains the top priority," Chen told China Daily. "Next year, there will be more tax cuts, the value of which is expected to exceed that of this year," he said. Value-added taxes may be the focus of the tax cut initiative and there is room for business income taxes and tariffs to be reduced, he said.
"We expect China to launch larger-scale tax cuts, boost consumption and encourage development of high-tech sectors."
The country may continue to use fiscal resources to support growth, he said, forecasting that China's fiscal deficit to GDP ratio will not exceed 3 percent next year.
China may cut 1.5 trillion yuan ($217.4 billion) worth taxes next year, Xiao Lisheng, an economist at the Chinese Academy of Social Sciences, told Chinese media. Zhou Tianyong, a professor at the Party School of the Communist Party of China Central Committee, told the media that he suggested that from 2019 to 2021, China's tax cuts would reach 5.6 trillion yuan. He did not elaborate.
China also may make more investments in infrastructure, and keep its monetary stance at an appropriate level to stabilize the economy, said Louis Kuijs, head of Asia Economics at Oxford Economics. Policymakers are expected to take further measures that could "include possibly more reserve requirement ratio cuts (to banks' cash reserves), additional support for infrastructure and further cuts in taxes and social security contributions".
He said it is important not to jeopardize the achievements of the campaign to rein in credit growth.
Xin Zhiming contributed to this story.
Base metals, commodity traders await what other decisions are made stimulus wise.
Key meeting predicted to help bolster economy
By WANG YANFEI/CHEN JIA/XIN ZHIMING | China Daily | Updated: 2018-12-18 07:30
[Photo/VCG]
China is expected to enact stronger measures, such as additional tax cuts and incentives for consumption and investment, to bolster the national economy next year, a stance that may be clarified at the annual priority-setting Central Economic Work Conference, analysts said.
The authorities have not said when the conference will be convened, but generally it is held in December.
The Political Bureau of the Communist Party of China Central Committee held a meeting on Thursday to discuss economic work for next year. During the meeting, the leadership agreed that there have been changes in the international and domestic situation, and the country will make efforts to stabilize economic growth while continuing to carry out reform and opening-up.
China faces some headwinds for growth next year, such as downward pressure from an easing real estate sector, shifting of the policy focus to quality of growth, financial regulatory tightening and fallout from China-US trade disputes, said Chen Xingdong, chief economist at BNP Paribas China.
In the long run, the country's pursuit of high-quality growth will benefit its economic development and its urbanization policy. If implemented well, it will contribute about 1 to 2 percentage points annually to GDP growth, he said.
"In the short term, growth stabilization remains the top priority," Chen told China Daily. "Next year, there will be more tax cuts, the value of which is expected to exceed that of this year," he said. Value-added taxes may be the focus of the tax cut initiative and there is room for business income taxes and tariffs to be reduced, he said.
"We expect China to launch larger-scale tax cuts, boost consumption and encourage development of high-tech sectors."
The country may continue to use fiscal resources to support growth, he said, forecasting that China's fiscal deficit to GDP ratio will not exceed 3 percent next year.
China may cut 1.5 trillion yuan ($217.4 billion) worth taxes next year, Xiao Lisheng, an economist at the Chinese Academy of Social Sciences, told Chinese media. Zhou Tianyong, a professor at the Party School of the Communist Party of China Central Committee, told the media that he suggested that from 2019 to 2021, China's tax cuts would reach 5.6 trillion yuan. He did not elaborate.
China also may make more investments in infrastructure, and keep its monetary stance at an appropriate level to stabilize the economy, said Louis Kuijs, head of Asia Economics at Oxford Economics. Policymakers are expected to take further measures that could "include possibly more reserve requirement ratio cuts (to banks' cash reserves), additional support for infrastructure and further cuts in taxes and social security contributions".
He said it is important not to jeopardize the achievements of the campaign to rein in credit growth.
Xin Zhiming contributed to this story.
The meeting starts today.
China economy policymakers to gather on Tuesday to set course as US trade war tide rises
China’s senior policymakers will on Tuesday begin setting out the government’s economic policy direction for next year, immediately after the ceremony celebrating the 40th anniversary of the country’s reform and opening up initiative, sources said.
The annual Central Economic Work Conference (CEWC), which will be attended by all high-ranking state leaders including President Xi Jinping, Premier Li Keqiang, Vice-Premier Liu He, financial regulatory officials, economic planners and provincial governors, will start after the commemorative event at the Great Hall of the People.
Policymakers are then expected to spend the following two days discussing ways to stabilise the domestic economy, an urgent task as the trade war with the US is taking a rising toll on growth.
They are expected to consider more measures to stimulate growth while lowering their headline growth target for next year. The steps taken by the government so far are yet to lift the economy.
Chinese growth slowed to a decade-low rate of 6.5 per cent in the third quarter, with indicators for the first months of the fourth quarter pointing to a further slowdown. Analysts predicted that growth will be hit hardest in the first half of next year when the full effect of US tariffs is felt.
US$588 billion in tariffs could threaten global economy, WTO warns
Greater fiscal spending, including a higher budget deficit than this year’s 2.6 per cent of gross domestic product, as well as larger tax cuts than this year’s 1.2 trillion yuan (US$174.38 billion), are anticipated. More monetary policy easing, including more cuts in bank’s required reserve ratio and possibly even a policy rate reduction, are envisaged.
Economic policies decided at the conference will be summarised in a report by Xinhua. Details will be passed to ministries and provincial and local governments.
The CEWC a year ago set three tasks: derisking, pollution control and poverty alleviation.
China economy policymakers to gather on Tuesday to set course as US trade war tide rises
China’s senior policymakers will on Tuesday begin setting out the government’s economic policy direction for next year, immediately after the ceremony celebrating the 40th anniversary of the country’s reform and opening up initiative, sources said.
The annual Central Economic Work Conference (CEWC), which will be attended by all high-ranking state leaders including President Xi Jinping, Premier Li Keqiang, Vice-Premier Liu He, financial regulatory officials, economic planners and provincial governors, will start after the commemorative event at the Great Hall of the People.
Policymakers are then expected to spend the following two days discussing ways to stabilise the domestic economy, an urgent task as the trade war with the US is taking a rising toll on growth.
They are expected to consider more measures to stimulate growth while lowering their headline growth target for next year. The steps taken by the government so far are yet to lift the economy.
Chinese growth slowed to a decade-low rate of 6.5 per cent in the third quarter, with indicators for the first months of the fourth quarter pointing to a further slowdown. Analysts predicted that growth will be hit hardest in the first half of next year when the full effect of US tariffs is felt.
US$588 billion in tariffs could threaten global economy, WTO warns
Greater fiscal spending, including a higher budget deficit than this year’s 2.6 per cent of gross domestic product, as well as larger tax cuts than this year’s 1.2 trillion yuan (US$174.38 billion), are anticipated. More monetary policy easing, including more cuts in bank’s required reserve ratio and possibly even a policy rate reduction, are envisaged.
Economic policies decided at the conference will be summarised in a report by Xinhua. Details will be passed to ministries and provincial and local governments.
The CEWC a year ago set three tasks: derisking, pollution control and poverty alleviation.
solarz
Brigadier
Hmmm... I have to say I've never heard of that. That would certainly have been useful when I bought my house 2 years ago.
I am looking at this from a macro perpective. Tightening capital outflow from China means less China sourced FDI to Canada, on top of Canada's own debt overhang, and now finally this Huawei issue.
I don't get the same data as you are on Toronto prices.
Toronto new home prices see biggest 12-month drop in more than two decades
Further evidence that tighter mortgage lending has slowed a boom in Canada's biggest city
Canadian home sales will fall to 9-year low next year, CREA forecasts
solarz
Brigadier
Those are *new* home prices. They're dropping because they were vastly over-inflated in 2017.
I was house hunting in 2016. My budget was 800k. I could find plenty of 3-bedroom houses in the resale market around this price point, but when I looked at new homes offered by developers, 3-bedrooms were being listed for 900k + HST!
A lot of people who made down payments on new houses got burned when the more stringent mortgage rules and the foreign tax came into effect.
Anyway, the vast majority of Canada's real estate market are not driven by wealthy foreign billionaires, but by middle class immigrants. Vancouver is something of an outlier as it's a favorite destination among the very wealthy, but there are no Chinese billionaires in Toronto.
Jura The idiot
General
now noticed the tweet
Beijing and Ottawa are maintaining regular diplomatic communication regarding the recent detention of two Canadian nationals in China, and Beijing has arranged for Canadian officials to have access to them, Foreign Ministry spokeswoman Hua Chunying said on Monday.
Beijing and Ottawa are maintaining regular diplomatic communication regarding the recent detention of two Canadian nationals in China, and Beijing has arranged for Canadian officials to have access to them, Foreign Ministry spokeswoman Hua Chunying said on Monday.
PiSigma
"the engineer"
The science is not really proven. Since back in the 70s and 80s there were talk about an ice age coming. Most of the data presented is a linear growth path, which is compleltly unrealistic. There is a reason Al Gore never used scales on his presentation. The supposed hottest year in 200 years last year proved to be one of the coldest.... Hmmm
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