Test of 50% house price drop
2011-04-23 09:08
China is proposing a worst-case scenario of a 50 percent drop in house prices in a stress test to assess the impact of property fluctuations on bank assets, sources said yesterday.
China is trying to curb rising home prices by limiting purchases and loans to drive out speculation. In January, the State Council raised the down-payment requirement on second-home mortgages to 60 percent from 50 percent. An extra 10 percent interest rate applies to a second mortgage. The State Council also said banks must stop offering loans to third-home buyers.
Eastday-Test of 50% house price drop