China, Gold, Banks and a Comet Justin’s A. Urquhart Stewart’s Latest Weekly Commentary

Justin is one of the most recognisable and trusted market commentators on television, radio, and in the press.

Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclay’s Stockbrokers and developed a unique understanding of the market’s roles and benefits for the private investor.

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China, Gold, Banks & a Comet

China property.

If ever there was a need for some clear warnings, it has to be around the Chinese domestic property market. I have some serious concerns about both private and public Chinese property and some of the infrastructure as well. It goes up quickly without any of those tiresome local planners getting in the way, but the standards and quality have to be rather worrying.

From poorly made flyovers to Singapore style apartment blocks fit for one climate but built in another – to this you can add a worry over the lack of a regulated property code and legal structure. Those considering investing in Chinese property should think of just one word of precedent – Spain. Now to add to this fetid market, the authorities have introduced a capital gains tax to try and curb the more rampant speculation that has been going on.

The result? It has just got worse! The new rules have allowed an exemption on any individual’s first property, resulting in married couples now arranging a quickie divorce, not for culinary or other domestic disputes, but rather so that they can both get their property exemption from the new 20% CGT.

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