Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (48228)	7/6/2012 6:52:53 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70668

01:54AM China tax-receipt drop spells danger: StanChart by Chris Oliver HONG KONG (MarketWatch) -- Dwindling income-tax receipts could be flashing a danger sign for the Chinese economy, according to analysts who said it wasn't clear whether the contraction was a statistical anomaly or evidence of large-scale unemployment. Income tax paid by wage earners is contracting at a faster rate than at any other period in recent history, eclipsing even the financial-crisis dip in early 2009, according to a note release Friday by Standard Chartered Bank. StanChart economist Stephen Green said in Shanghai that one explanation could be the adjustment to tax bands unveiled in 2011, which hiked the minimum monthly income-tax level to 3,500 yuan ($550) from 2,000 yuan. The move is estimated to have resulted in 60 million low-wage earners dropping below the taxable threshold. The change could cut national income-tax receipts by 160 billion yuan in 2012, or 26% from levels in 2011, according to Ministry of Finance estimates. Green said, however, that many of these low-wage workers likely never paid income tax to begin with, and as a result, the impact could overstated. Another explanation, though too early to be certain, is that layoffs are beginning to take their toll upon the collection of income tax. Green said the overall trend in the job market was weakening, though on the whole, the Purchasing Managers' Index showed jobs were being created. Those most likely to get laid off during early stages of the downturn were not well tracked in official data, he said, referring to the nation's 160 million migrant workers. Thursday, Jul 05, 2012 11:57PM China home prices could fall again: economist by Chris Oliver HONG KONG (MarketWatch) - Recent gains in Chinese house prices might be a result of misguided expectations, according to economist Yi Xianrong of the government-affiliated Chinese Academy of Social Sciences, writing in the state media Thursday. In commentary for the China Daily, Yi said the price rise has taken place without easy credit, making it strange in a historical context. "The current rise in house prices has, to a large extent, been a result of misinterpretation of the government's policies to stimulate the economy, an increase in real-estate speculation, and excessive concerns among ordinary home buyers that prices will continue to rise," Yi said. China Real Estate Index System released data Monday showed average house prices in 100 major Chinese cities rose in June, marking the first across-the-board advance after nine straight months of decline. Unlike conditions during previous periods of soaring house prices, Yi said that the monetary base was contacting instead of growing, and down payments could now run more than 60%, compared to 20% required in the latter half of 2008. He said prices were unlikely to see big gains unless housing credit was loosened and preferentially interest rates brought back. Yi also said the government should try to convince people that prices could fall in the future and should raise awareness of the risks of a real-estate bubble. 09:59PM Hong Kong stocks waver, as banks drop, property up by V. Phani Kumar HONG KONG (MarketWatch) -- Hong Kong stocks struggled for direction early Friday as an unexpected interest-rate cut by the Chinese central bank raised worries about economic data due next week, and with bank stocks hit by concern the cut would squeeze their profitability. The Hang Seng Index ( HK:HSI) traded down 0.2% at 19,764.70, and the Hang Seng China Enterprises Index gave up 0.3% to 9,678.74. Shares of Bank of Communications Co. ( HK:3328) ( BCMXY) dropped 3.1%, China Construction Bank Corp. ( HK:939) ( CICHY) lost 1.9%, and China Merchants Bank Co. ( HK:3968) ( CIHKF) shed 3.4%. Mainland property and some auto-maker shares rose, however, on expectation the rate cut would aid their performance. Shares of China Resources Land Ltd. ( HK:1099) ( CRBJY) jumped 3.2% and Evergrande Real Estate Group Ltd. ( HK:3333) ( EGRNF) soared 4.4%, while Geely Automobile Holdings Ltd. ( HK:175) ( GELVY) added 1.1%. China's Shanghai Composite ( CN:SHCOMP) was flat at 2,200.37 after moving in both directions.