Survey: Housing price decline risks are top concern for 70% of bankers

13:17, October 14, 2010      

Email | Print | Subscribe | Comments | Forum 

More than 70 percent of Chinese bankers regard risks of plummeting housing prices as their top concern, although they predicted a bullish property market in the long run, according to the Chinese Bankers Survey Report 2010 released today.

The survey was conducted by China Banking Association and PricewaterhouseCoopers and targeted high executives and managers from domestic banking financial institutions.

This year's Chinese bankers survey found that most respondents believed that the property market would go down in the short term but will return to the upward trend in the long run. The limited land resources and ongoing urbanization are two major reasons for this assessment.

"In the next couple of year s— or even in a longer period — property prices will rise steadily," said a respondent.

Data released by the central bank on Oct. 13 showed that individual housing mortgage loans increased by 247 billion yuan in September, accounting for over 40 percent of the month's overall credit expansion.

"We feel that the uncertainties in the housing market have increased significantly...the long-existing irrational factors in the market have made us highly prudent toward the property industry," said a high executive from a Chinese bank.

Meanwhile, the risk chain in property development loans and the impact of hot money also deepened bankers' concerns.

By People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion