China Property Shares Drag CSI 300 Down Most in 2 Years on Curbs – and more of Today’s China Real Estate Links | March 5, 2013

Here is a list of the day’s latest China real estate news collected from around the web:

• China Property Shares Drag CSI 300 Down Most in 2 Years on Curbs

  China’s stocks plunged, dragging down the CSI 300 (SHSZ300) Index by the most in two years, after the government ordered more measures to cool property prices and growth in the nation’s services industries slowed.
  The CSI 300, representing the nation’s biggest companies in the Shanghai and Shenzhen stock exchanges, fell 4.6 percent to 2,545.72 at the close, the most since November 2010, while the Shanghai Composite Index (SHCOMP) slid 3.7 percent to 2,273.40, the most since August 2011. China Vanke Co., the nation’s largest property developer, led a gauge of real-estate companies to the steepest tumble since June 2008. Anhui Conch Cement Co. and Sany Heavy Industry Co. dropped by more than 8 percent.”

• Housing tax increase worries young Chinese

  Whether or not to buy an apartment has become a big headache for Liu Yan, 27, an engineering designer in Shanghai, after the State Council on Friday ordered a 20-percent individual income tax be levied on capital gains by home sellers.
  With the move popularly regarded as the Chinese Cabinet’s latest move to curb property speculation, Liu doubts the regulation will make much difference.
  Prior to the new rules, income tax was 1 percent to 2 percent of the sale price.
  “Sellers will definitely shift the tax increase to the buyer, which will push the home price to a new high,” said Liu, who spends 2,500 yuan ($398) renting a tiny room in a two-bedroom flat built in the 1980s in downtown Shanghai.

• Fitch Publishes China Vanke’s ‘BBB+’ Rating; Outlook Stable

  Fitch Ratings has published China Vanke Co Ltd’s (Vanke) Long Term Issuer Default Rating (IDR) of ‘BBB+’ with Stable Outlook and senior unsecured debt rating of ‘BBB+’. Fitch has also assigned Vanke’s proposed offshore USD unsubordinated unsecured notes an expected ‘BBB+(EXP)’ rating. The notes, to be issued by Bestgain Real Estate Limited (Bestgain), are to be jointly and severally guaranteed by Vanke Real Estate (Hong Kong) Company Ltd (Vanke HK), a wholly owned subsidiary of China Vanke.

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