Shanghai Futures Exchange copper eased 1 percent to 48,390 yuan ($7,035) a tonne on Thursday as concerns about fresh regulations that could dampen China's property boom steepened a correction that began with improving prospects for a US interest rate hike in March. China's Vice Housing Minister Lu Kehua told reporters on Thursday that preparatory work was now being done for a nationwide property tax, but did not provide further details. Further property taxes could cool the construction market, a main demand driver for metals.
Lu's comments came as China also announced plans for greater oversight of its asset management industry, souring sentiment in the stock market. "It's been around for the past few days. All these things add up and with regulators at least talking about a property tax, at some point it will come in," said a metals broker in Hong Kong. Copper has been underpinned by concerns over supply.
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