The recent government measures to cool the red-hot property market will not slow economic growth or lead to a significant rise in the bad debts of lenders, a central bank adviser said on Tuesday.
China's crackdown on the real estate market may trigger an estimated 400 billion yuan ($58.6 billion) to flow out of property and into equities, according to the nation's largest brokerage.
Financial Secretary John Tsang warned that the local economy is still at risk of forming a property bubble, and the administration will unveil more measures to suppress the bubble formation whenever it deems it appropriate.
Couples use loopholes in policies aimed at controlling house prices. He Na reports from Beijing
Cities such as Beijing, Shanghai and Shenzhen may experience some correction but price declines won't be more than 10 percent.
The government is "resolute" in curbing price rises. The latest crackdown on prices won't lead to a property market slump.
China must tackle its property bubble for the sake of economic health and social stability, even if the market feels some short-term pain in the process, an official financial newspaper said on Thursday.
Along with a tightened credit policy, an increased down payment and higher interest rates for mortgage loans are mainly aimed at increasing the cost of real estate speculation and reducing such activities.
Tightening measures to cool the sizzling real estate market are badly needed. Yet, to cure China's property price fever, Chinese policymakers need to come up with a more holistic therapy than the piecemeal approach they currently adopt.
After the mayhem, order seems to be returning to the nation's property market as the monthly price growth rate slowed in March, an indication that the government's tightening measures are finally bearing fruit.
China's property market is the biggest bubble in the history of finance, and only by raising the interest rate can the bubble be pierced.
China's real-estate market is overheating and investors should stay cautious on developers after the shares fell the most in the main equities index this year, according to Nomura Asset Management Hong Kong Ltd.