CCTV Script 04/3/13
This is the script of CNBC's news report for China's CCTV on March 4, Monday.
"Welcome to CNBC business daily.
China clamps down on the property market.
The country's state council said on Friday that it could hike down payments and loan rates for second home-buyers in some cities.
Regulators are also pushing for stricter compliance to capital gain taxes on transactions.
The curbs come as residential prices escalate across the country.
According to a private survey done by China Real Estate System, average home prices in China's 100 biggest cities rose for the 9th straight month in February, although the pace of increase slowed.
The new measures come as China's political elite gather in Beijing for their annual meeting
[Sound on tape by: Mikio Kumada, Executive Director & Global Strategist, LGT Capital Partners: China's policy makers have a choice to tighten now, to avoid something more uncomfortable in the future. The repeated hopes that we've seen of a resolution in the future - first because inflation was coming down, or the property market was stabilising, or because there's a new government - all these hopes repeatedly get disappointed again and again.]
[Sound on tape by: Alex Wong, Director of Asset Management, Ample Capital: The property measure have been discounted a lot by the market and looking at the big cap property stocks, they are still well below recent lows.]
But could China's push for looser market policy and tighter curbs at the same time be too confusing for investors?
[Sound on tape by: Paul Krake, Founder, View from the Peak: We're seeing so many mixed signals coming out of China. It's borderline comical what we're seeing. Three weeks ago, we had a massive draining of liquidity, which was akin to a tightening of policy. Over the weekend, the deputy govt of the central bank says that we will be easing back on these tightening measures. Have we just had the shortest economic cycle in history of three weeks? Are we seeing looser monetary policies with tighter property curbs that are here to stay?]
[Sound on tape by: Alex Wong, Director of Asset Management, Ample Capital: Of course people will be confused because they think the monetary policy will not be too bad. But policy measures against property prices will probably drive the price lower. If you look at the China situation, they have been trying to contain the property prices for at least 2.5 years now. People reckon that the measures have not been too effective, and that reinforces the bias that even after the measures, the price are still quite firm.]
So is it time for investors to pull out of the stock market?
[Sound on tape by: Paul Krake, Founder, View from the Peak: I'm bearish on Chinese stocks. The impact of the yuan is going to be significant on growth and earnings across the board. If we are starting a domestic tightening cycle and the liquidity draining a few weeks ago indicates that, then it's not a good thing for stocks.]
[Sound on tape by: Alex Wong, Director of Asset Management, Ample Capital: I am not too bullish or bearish. I think that China will gyrate between a broad range for quite a while. We are near the bottom end of the range, so I am not too bearish at this level. But I would not be too bullish even if it rises to around 5-7% in the index.]
Li Sixuan, from CNBC's Asia headquarters."