A black Friday in China as exports shrink, stocks plunge and homeowners face new taxes
- Overseas shipments down by a fifth in February, stock market loses 4 per cent and lawmakers move a step closer to taxing property owners
- Figures challenge widely held assumption that a likely trade deal with the US and Beijing’s policy easing moves will be enough to stabilise China’s economy
It was a black Friday for Chinese exporters, stock investors and homeowners, with a series of negative official figures released on the same day.
China’s General Administration of Customs said exports were down by a fifth in February year on year as the trade war with the United States took its toll on the world’s second-biggest economy.
China’s stock market also had its worst day in five months on Friday, with the benchmark Shanghai composite stock index shedding 4.4 per cent. Investor sentiment remains fragile, indicating that optimistic forecasts of a sustained bull market may be premature.
In addition, China’s top lawmaker, Li Zhanshu, told a National People’s Congress session on Friday afternoon that the legislature was considering a law that could for the first time authorise the government to collect taxes from homeowners.
Policymakers have debated for years whether use property taxes to cool overheated real estate markets and increase fiscal revenue but the idea has not become a reality because of strong opposition from property owners, a powerful political force.
