MonitorBeijing is only treating the symptoms, not their cause
Artificially low interest rates have stored up trouble for the mainland's economy, and no regulatory quick fix will be sufficient to address it
Last week the authorities in several of China's biggest cities slapped a 20 per cent capital gains tax on homeowners who sell their properties.
Their latest attempt to rein in runaway property prices comes just days after regulators launched a new crackdown on China's ballooning shadow banking system.
At first glance, these twin initiatives make it look as if Beijing is finally getting to grips with the financial risks that threaten China's future growth trajectory.
In reality, however, the authorities are merely tinkering. At best their efforts will be ineffectual. At worst they could backfire. Either way, as long as policymakers fail to tackle the underlying problem, the dangers to China's economy will continue to mount.
On the surface it might look as if imposing a capital gains tax could be an effective way to curb property speculation and restrain rising prices.
Certainly the threat of its imposition triggered a quick flurry of sales among homeowners anxious to book their profits before the new tax came into effect.