Iron ore and coal crashed yesterday afternoon on the news that Chinese policymakers have no intention of ending their campaign to crush excess property development:
China’s banking regulator vowed to keep its curbs on the nation’s property market, dismissing concerns that the crisis enveloping China Evergrande Group will have any major impact on the credit profile of the sector as a whole.
The property controls have achieved good results and the government will refrain from using the real estate sector as a short-term economic stimulus measure, Liu Zhongrui, an official at the China Banking and Insurance Regulatory Commission, said at a briefing in Beijing on Thursday. Evergrande is an “individual” case and won’t hurt the overall credibility of Chinese firms, which is backed by the country’s economic stability, he said.
