China Construction Bank raised its
mortgage rate by 10 basis points to 2.5%.
Hongkong and Shanghai Bank, Standard Chartered Bank, Hang Seng Bank (0011.HK), Bank of East Asia (0023.HK), Chong Hing Bank
(1111.HK), ICBC Bank (0349.HK) and CITIC Ka Wah Bank said they do not plan on following suit.
Do you think this small rise will kill the red-hot Chinese real estate market? I sure don't.
Posted by: Lucas Purao on Saturday, June 21, 2008
this from the economist magazine: "The sizzle is off China's property markets, and that's potentially bad news for the country's social stability. "In the past two years China's property market has enjoyed a spectacular rise, with average prices in some cities doubling. But that raised a red flag with Chinese economic policymakers, and in late 2007 the central government made controlling the rise of asset prices a policy priority. Since then, the State Council has rolled out a series of regulations—from credit ceilings to a 40% down-payment requirement for second mortgages—in order to combat property speculation. "The effect was immediate. In early 2008 previously soaring housing markets in southern China began to go into a tailspin. The prospects for other key markets are not good either. With China continuing to struggle with high inflation, the central bank is likely to keep tight reins on monetary policy. Indeed, on June 7th it increased commercial banks' reserve-requirement ratio by 100 basis points, in effect taking out over Rmb400bn (US$58bn) from the financial system." http://www.economist.com/daily/news/displaystory.cfm?story_id=11605123&fsrc=nwl Pls share with us your insight on this report. Thanks and more power!