Properties
Surging China property market poses risks -official
(Reuters) - China’s supervisor of major financial institutions on Wednesday warned against risks in the property market after recent rapid price rises, and stressed the importance of controlling the pace of lending.
Chinese banks lent nearly 10 trillion yuan ($1.5 trillion) last year to support the government’s massive economic stimulus, fuelling a surge in real estate and stock prices that triggered fears of asset bubbles in both markets.
“There’re definitely risks in the real estate market, as continuously rising property prices have made homes unaffordable to ordinary people, potentially causing social as well as economic problems,” Ding Zhongchi, chairman of China’s Board of Supervisors for Key State-Owned Financial Institutions said.
“It’s important to control the pace of lending, while tightening banks’ capital adequacy requirements helps serve that purpose,” he told Reuters, speaking on the sidelines of the Chinese People’s Political Consultative Conference at Beijing.
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