Risks from property tax manageable, says China report

Beijing

CHINA could manage the resulting financial risks if a property tax is introduced and causes the housing market to correct, a state newspaper said on Monday in a front-page commentary that sought to dispel fears that such a tax would burst a price bubble and spark a calamitous rise in bad loans for banks.

"The risks are overall manageable, despite the possibility of bringing short-term shocks to the market," the Economic Information Daily said, estimating China would be able to weather a 20 per cent decline in house prices.