China Business Confidence
Written by JDPGlobal | Thursday, 14 July 2005
The National Bureau of Statistics (NBS) released a report suggesting that China's business confidence index in the property market dropped 22 points in the second quarter compared with the first three months of this year.
In a survey of 18,500 companies of various kinds, the new index declined by 13.9 points. Experts attribute this to a set of government policies aimed at cooling the overheated real estate sector, resulting in a large number of potential Chinese buyers postponing their house buying plans.
It also aimed at curbing the soaring housing prices by proposing taxation and other policies to discourage speculation and ensure the supply of affordable housing.
However, housing developers have taken a wait and see attitude hoping the market will warm up soon.
