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Crime & Corruption

China’s anti-corruption drive triggers frantic property dump among officials


Chinese PropertyReal estate agents in provinces such as Guangdong and Jiangsu have been frantically trying to push deals for a torrent of second-hand flats suddenly released on the market – many of which belong to government officials, the Oriental Morning Post reported on Monday.

With an imminent state-led corruption crackdown looming, nervous Chinese officials – some of whom own multiple properties – are swiftly dumping assets  via private channels such as intermediaries.

Property agents have reported receiving mass produced text messages such as “Eight sets of hard-to-find flats, owner selling all at once”.

“What’s strange is that these government people are anxious enough to call us requesting an urgent search for intermediaries to help sell their property holdings,” said a Jiangsu property manager from a financial advisory who gave the alias, Yang Zhi.

The report emphasised this was only the “tip of an iceberg”, suggesting the possibility of more asset sales by anxious officials as the state government kicks its anti-corruption drive into high gear.

The massive fire sale has sparked concerns that oversupply could lead to a decline in home prices in the secondary market. However, Chinese real estate mogul Huang Nubo, of the Zhongkun Investment Group, pointed out that the government’s anti-corruption policies could actually be more effective in stabilising the property bubble than the recent financial caps and monetary easing.

Huang reiterated that real estate markets would be brought back to normal because they would more accurately reflect trends in demand and supply since officials had no more undeclared property to secretly hoard.

Home prices on the mainland are forecasted to rise about 7.8 per cent next year while property investments will be up roughly 17 per cent, according to a recent report by the China Index Academy.

All this comes amidst new anti-corruption measures by the Central Commission for Discipline Inspection to reform and bolster laws on assets disclosure and properties declaration amongst high-, middle- and low-ranking government officials.

A few members of the National People’s Congress have proposed the complete removal of “property privacy” for civil servants in an effort to tackle huge gains from “grey income”.

Grey income is often left unreported by wealthy individuals and government officials due to various loopholes such as supervisory weaknesses, rent-seeking and price distortions in the system. Government officials, for example, can transfer ownership of property titles to relatives and friends to avoid having to declare the property.

Many government officials are known to have secret financial investments on hand. Those who own dozens of undeclared property have recently been dubbed “property uncles and aunts” by netizens on social media.

In October, a junior official from Guangzhou’s Panyu district was sacked and charged with corruption after authorities uncovered that he and his family owned 22 residential and commercial properties totalling to about 40 million yuan (HK$50 million). A number of other property “uncles and aunts” have since been implicated on similar charges.

Source: SCMP “China’s anti-corruption drive triggers frantic property dump among officials”
 
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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

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  1. Pingback: Panic among Chinese officials as authorities declare war on corruption « China Daily Mail - January 27, 2013

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