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Is China prepping for a property collapse?

Posted on 05 August 2010

From Theglobeandmail.com: One of Wednesday’s news items that is not getting enough exposure is China’s decision to conduct stress tests on its lenders. Not just any old stress tests, but ones that gauge the impact of property prices falling as much as 60 per cent.
Bloomberg News has some of the details: “Banks were instructed to include worst-case scenarios of prices dropping 50 per cent to 60 per cent in cities where they have risen excessively, the person said, declining to be identified because the regulator’s requirement hasn’t been publicly announced……………………………………….Full Article: Source

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