Banks

Carney: UK is ‘investment banker for Europe’

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Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Categorized | Property

China mulls extension of contentious property leases


Posted on November 28, 2016

China’s leaders are pondering how to solve a simmering problem which is increasingly worrying the country’s home owners – what to do when decades-long private leases on land expire.

All mainland Chinese land is state-owned, but use rights for periods ranging from 20 to 70 years have been granted since the 1990s.

The low end of that range came to national attention in April, when the eastern city of Wenzhou told local homeowners who held 20-year usage rights that they had to pay a third of their homes’ value to renew them.

That sparked an outcry from middle-class families across the country who have poured their savings into property, the ultimate fate of which has never been fully resolved under Chinese law.

The central government’s powerful State Council is researching how to extend usage rights for urban land, according to an official dispatch by the official Xinhua news agency which provided little detail on what measures might be adopted.

The guidelines, which state media said were published Sunday, appear to pick up on a 2007 property law which asserted land use rights could be renewed, but failed to specify how that would happen.

They also include exhortations to limit the conflicts that arise from ubiquitous government land grabs, as well as calls to grant greater property rights to farmers. But there was no indication Beijing intends to grant farmers full private ownership of their plots, collectively ownership of which enabled local officials to expropriate land in the first place.