Last Updated on September 27, 2007 by stlplace
It’s not the last ditch, but the goverment (China bank regulation commision, or CBRC) is raising the down payment for 2nd or 3rd time home buyers. They will need to put down 40% or higher (compared to 30% in the past). Obvioulsy we can understand the good intention of the goverment policy: contain the speculation in the housing martket. More importantly, I believe this move is to help the banks control the risks in the home loans. After all, most banks in China are owned by the goverment; and housing loans made up a large percent of bank lending and bottom line (profit). Nobody wants to see a “US subprime style” crisis in China. But can the housing market really be regulated? Or can this new policy be implemented to all the stake holders’ satisfication?
(The following is some home listings at a broker near Zhongshan Park. Full size pic can be seen here).
