George Liu's  Instablog

George Liu
Send Message
I am the Chief Financial/Economics Columnist of The Daily Political Review, a Monitored Contributor for FOREXPROS, a Seeking Alpha Certified Contributor, as well as a paid blogger for The Motley Fool Blog Network. I also currently serve on the Board of Directors for Ureka Co. Currently, I am... More
My company:
Ureka Rechargeable Battery Case
My blog:
Motley Fool Blog Network
  • New Regulations For Chinese Land Developers 0 comments
    Jun 8, 2012 3:46 PM | about stocks: TAO

    The Chinese government has issued a regulation requiring mainland property developers to pay a 20 percent land vacancy fee if they leave land vacant for over a year.

    At first look, this development doesn't look much like a stimulus measure. However, upon closer inspection, this measure puts a damper on land speculation that is common amongst land developers. Unless the speculators believe that their land worth will appreciate more than 20% in one year, or appreciate significantly before a year, they will have little incentive to continue the rampant speculation that has inflated China's housing bubble. Moreover, cash-strapped developers that do not have the sufficient capital to embark on projects on vacant land they own will have to consider selling the land, thus potentially depressing land prices. So in essence, with this regulation, the Chinese government is looking to slowly deflate the housing bubble to a reasonable level, which is a much more appeasing approach considering the alternative could potentially be a full-blown housing crisis.

    Stocks: TAO
Back To George Liu's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $WAC down nearly 20% on EPS of $0.64 compared to analyst estimate of $0.67. Really?
    Mar 19, 2013
  • Why did FMER plunge 11.3% today on news of CRBC acquisition? In my opinion a pretty good deal.
    Sep 13, 2012
  • LULU cools down a little after soaring 13% on Friday on strong $0.39 EPS versus analyst estimates of $0.31
    Sep 10, 2012
More »

Latest Comments


Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.