China banks head for fresh property stress test

13:34, April 22, 2011      

Email | Print | Subscribe | Comments | Forum 

China's banking regulator has told banks to conduct another round of stress tests to assess a possible plunge in property prices, envisioning a worst-case 50 percent fall in prices, the official China Securities Journal said on Friday.

The latest directive, which cited Beijing, Shanghai, Shenzhen, Guangzhou, Chongqing, Hangzhou and Nanjing as "high-risk" areas, called for tests to begin in early April, the newspaper said, citing regulatory officials.

Results will help the China Banking Regulatory Commission decide whether any more property tightening measures will be needed, the newspaper said.

Regulators since last year have told banks to conduct a series of tests to assess exposure to property loans, but they have also emphasized that these do not reflect their forecasts for the sector.

The move comes amid widespread concerns about a bubble in the hot property sector, and the government has ratcheted up its campaign to rein in price rises, including imposing a maiden property tax, lifting the down payment for home buyers and restricting purchases of multiple homes.

Chinese banks must further tighten lending to the property sector and to local government finance companies to ward off potential financial risks, the banking regulator said on Tuesday.

The campaign has produced some tentative results, with average nationwide property prices in 70 major cities rising 5.2 percent in March from a year ago, a slightly slower pace compared with February's 5.7 percent.

Source: chinadaily.com.cn/agencies
 
 
     
 
BRICS Leaders Meeting 2011
 
Japan in aftershocks
 
     
 
 
 
  Weekly review  
 
April 14   BRICS nations can be anchor of global economy, politics
 
April 13   China launches assault on child kidnapping
April 12   China's coastal seas unaffected by Japan's radioactive water
April 11   US has serious human rights abuses: China
April 16   The week in pictures
April 11   PM Kan offers thanks for 'Kizuna' on People's Daily
April 13   Stable BRICS nations prop up world development
April 13   US should stop acting like 'preacher' of human rights
April 15   GDP rises 9.7% in Q1, inflation surges too
April 14   Auditor lady's sudden death sparks overwork debate
 
     
 
 

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • BRICS Leaders' Meeting 2011
  • Focus On China
Major headlines
Editor's Pick
  • 14th Suzhou Int'l Tourism Festival kicks off
  • Nikolay Davydenko vs Nicolas Almagro in Barcelona
  • Canadian PM on campaign trip for federal election
  • Earthquake in Japan impacts some automakers, effects on industry as a whole considered limited
  • Chinese automakers showcase green car ambitions at Shanghai auto show
  • Top leader of DPRK inspects North Hamgyong Province
Most Popular
Hot Forum Dicussion