Cross-posted from Investing in Chinese Stocks, China is going after realty mispricing:
It was only yesterday (November 8), this Regulation re-upgrade – Development and Reform Commission, Ministry of Housing and Urban jointly issued a document, will conduct a special inspection for the provinces, autonomous regions, municipalities and cities, sub-provincial capital cities of the real estate sales price tag one month (November 10 – December 20), check the objects involved in real estate development companies and real estate agencies. Before acting alone and each city is different, this regulation has been significantly upgraded specifications.
Some analysts pointed out that the special inspection is actually aimed at the hoarding behavior aspects of real estate sales. Overall, including the special inspection and previous purchase of the credit limit, there is a round of regulation is a consistent core, that is in many ways regulate market transactions, and thus play a role in suppressing asset bubbles squeeze. From the follow-up impact point of view, the special inspection will help guard against the phenomenon of inflated housing prices, buyers will be reduced concerns, emboldened to buy a house will increase.
However, some analysts pointed out that the policy continued to tighten, affecting buyers expect changes and other factors, the fourth quarter core urban housing or a gradual transition to a slightly range.
And tightening mortgage criteria again:
With regulators prompted real estate credit risk, bank or personal housing mortgage loans fell back from early November.
Reporters from the latest number of banks was informed by stakeholders, regulators differential housing credit policy for personal housing mortgage loans has not changed, but more stressed before the lenders verify the authenticity of information, while the payment of the amount of personal housing mortgage loans on the requirements to achieve incremental monthly decline. That November, compared with October of incremental housing loans is lower than in October compared with September increased volume, and so on.
Insiders said the respondents, one of the major banks will continue to be regarded as personal housing mortgage loans to retail strategy. Next, the bank will force the consumer credit, the focus of high-quality state-owned enterprises, private enterprises quality, excellent listed companies and good growth of SMEs, to seize the opportunity “along the way” the construction of the national strategy.
Previously, regulators held a conference on housing commercial bank credit, requiring commercial banks to rational treatment of the property market, strengthen housing credit management, control-related credit risk.
A source close to the regulators said the bank needs to prevent excessive expansion of the real estate credit. Banks should focus on the aging population, the future of the credit crunch, real estate prices, “gathered in the head” of possible scenarios, prospectively proper risk monitoring, stress testing and risk management, “rainy day” to further increase the provision and enhancement capital.
Still nobody paying attention.
