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
In the latest salvo aimed at its property market, China is getting ready to launch a real estate investment tool that will give investors an alternative to bricks and mortar, and move to cool a market where prices have risen at the fastest pace in five years.
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.
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.
Total loans extended by 12 listed banks amounted to 21.77 trillion yuan ($3.19 trillion) in 2009, with property-related loans totaling 5.28 trillion yuan, accounting for over 20 percent.
China's banking regulator told larger banks to conduct quarterly stress tests on property loans and ensure the risks attached to such lending is strictly controlled after the government tightened credit rules to crack down on real-estate speculation.
China's government tightened its squeeze on the property market Tuesday, restricting pre-sales by developers, in a further measure to curb soaring property prices.
Shanghai is the top choice for Taiwan investors who are interested in property market outside the island, leaving Tokyo and Singapore immediately trailing behind, the China News Agency citing a local newspaper report.
Around 30 percent of people selling second-hand homes in Wangjing, Chaoyang district, have terminated contracts with buyers in recent days in anticipation of prices shooting up even higher.
HONG KONG - Investors should buy real-estate assets and funds that invest in property in the United Kingdom and Asia because a potential rebound in prices and economic growth will counter inflation risks, Aberdeen Asset Management Plc said.
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