Tuesday, April 12, 2005

Non-Performing Loans Prompt Restrictions: China

A pair of ChinaView.com articles explore whats up with housing regulations and why. "Shanghai's housing prices tumbled 4.5 percent in a single day last week amid apparent efforts by the central and local governments to rein in the city’s skyrocketing market."

There is good reason to be concerned. "Although China's Big Four state-owned banks, the bedrock of the country's financial system, have been doing their utmost to clear away bad loans and streamline their operation, their non-performing loan ratio still stood at an average of 15.6 percent by the end of last year."

"Personal housing loans in the city in the first two months of this year rose 64 percent from a year earlier. Loans to developers increased 41 percent and three-quarters of new bank loans in Shanghai last year related to property."


Post a Comment

<< Home