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China's Debt Bubble

Discussion in 'China & Asia Pacific' started by Som Thomas, Aug 21, 2017.

  1. sangos

    sangos Lt. Colonel ELITE MEMBER

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  2. Agent_47

    Agent_47 Admin - Blog IDF NewBie

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  3. Agent_47

    Agent_47 Admin - Blog IDF NewBie

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  4. An Indian

    An Indian 2nd Lieutant FULL MEMBER

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    Where is @RMFAN. Love to hear his/her comments here...
     
  5. RMFAN

    RMFAN Lieutenant FULL MEMBER

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    China to step up property market regulation to avoid bubble risk
    https://www.reuters.com/article/us-...regulation-to-avoid-bubble-risk-idUSKBN1DL0UE


    Reuters Staff




    BEIJING (Reuters) - China will step up financial regulation and crack down on speculation in the property market to stabilize prices and fend off bubble risks, state television CCTV reported on Tuesday, signaling renewed efforts to rein in risks from a rapid build-up in debt in the economy.

    The remarks from regulators at the People’s Bank of China (PBOC), the Ministry of Housing and Urban-Rural Development (MHURD) and the Ministry of Land and Resources (MLR) during a joint work meeting in central China’s Wuhan laid out short-term tasks to be achieved in real estate, CCTV said.

    China’s housing market has seen a near two-year boom, giving the economy a major boost but stirring fears of a property bubble, with the government taking strong measures since late 2016 to curtail speculative purchases.

    Despite efforts by Chinese authorities to curb speculation in the housing market, property prices have continued to climb although at a slower pace. New home prices rose at a slightly faster pace in October after gains had held steady the previous month.

    The regulators said China would prevent funds from being illegally channeled into the property market, and ensure capital allocation between real estate and other industries was balanced.

    The three central government entities also told provinces to stick to their tightening measures and be consistent in policy, warning against lax regulation that could lead to big fluctuations in the market and a build-up in financial risks.

    “(We) must not tolerate any thinking that we can sit back and relax,” the regulators said, according to CCTV.

    China will also improve its management of the land market and prevent cases of high land prices pushing up property prices, CCTV said.
     
  6. RMFAN

    RMFAN Lieutenant FULL MEMBER

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    Chinese shadow banking has slowed — but that's not as good as it seems
    • Growth in China's shadow banking sector is falling
    • But the borrowing is just moving around
    Huileng Tan | @huileng_tan
    Published 10:51 PM ET Sun, 19 Nov 2017

    https://www.cnbc.com/2017/11/19/chi...lowed-chinese-debt-may-just-go-elsewhere.html


    How has the official crackdown affected shadow banking?
    On Friday, China's central bank took a new step in curbing debt by announcing new regulations that tighten rules on the 102 trillion Chinese yuan ($15.3 trillion) asset management business — which contributes greatly to the shadow banking industry.

    That was just the latest stage of a crackdown from Beijing that has begun to show some signs of success.

    Broad shadow banking levels "barely grew" to 64.7 trillion Chinese yuan ($9.72 trillion) at the end of the first half of 2017 from 64.4 trillion yuan ($9.68 trillion) at the end of 2016, a Moody's report released in November showed.

    However, the growth in certain activities classified as "core" shadow banking accelerated to 18.2 percent from a year ago at the end of the third quarter of 2017, the reported added.

    Undiscounted bankers' acceptance, a short-term debt product in the "core" category, for instance, returned to positive territory for the first time in three years, said Moody's.

    The various "core" components are captured by Total Social Financing (TSF) data, an official gauge that provides a measure of credit and liquidity supplied by the entire financial system in China.

    Non-"core" components, meanwhile, are not part of the TSF and are based on the issuance of higher-risk instruments such as wealth management products and asset management plans. These are the targets of the recent crackdown.
     
  7. RMFAN

    RMFAN Lieutenant FULL MEMBER

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  8. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    At the top, China is Kleptocracy. The cohorts want to create massive profits by super inflating property, one of the four main contributors to Chinese debt. That is why it has been singing "aal ij bhell" when it was and is unwell for the rest :azn:
     

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