China stocks drop on tightening, bank levy (2)

15:27, April 22, 2010      

Email | Print | Subscribe | Comments | Forum 

It said monetary tightening, along with steps to control housing demand and manipulation, are the right policy choices for the government. Left unchecked, the bubbled property sector would distort the economy by suppressing much-needed consumption as people put so much of their savings into property.

Tough new measures announced in the past week have wiped out 240 billion yuan in the market value of listed developers and the damage will spread to related industries.

The head of China's banking regulator warned banks again on Tuesday against extending loans for speculative property investments and ordered all big lenders to conduct stress tests of real estate loans on a quarterly basis.

The Citigroup Inc. has predicted property prices may drop as much as 20 percent in the big cities as a result of the government clampdown, while the Shanghai-based China Business News reported record home-purchase cancellations in Guangzhou, South China.

Outside China, there are reports that Britain's government has recommended levying a new tax on lenders, and finance ministers of the G20 major developed and developing economies will convene in Washington this weekend to discuss the proposal, which is negative to the banks.

By People's Daily Online
【1】 【2】

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion