China announced on Sunday that it will not allow foreign speculative investment to cause a run on home prices.
The directive calls on the central bank and banking regulators to increase oversight and “window guidance” of mortgage lending.
“Relevant departments must enhance monitoring of loans and cross-border investment to prevent illegal inflows of capital into the property market and to avoid the impact of overseas hot money on China’s real-estate market,” the government said.
Reuters reported that approx 1/6 of China’s 10 trillion yuan ($1,5 trillion) in new loans in 2009 flowed into the housing sector.
DHW asks: Do you think China’s plan will stave off a housing bubble?
Tags: china, china housing bubble, chinese housing bubble, chinse housing market, foreign, Housing, housing bubble, housing market
China trying to prevent its own housing bubble http://desperatehousewise.com/china-trying-to-prevent-its-own-housing-bubble/
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