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Why are China’s curbing measures failing?

Posted on 05 May 2011

China’s residential property prices have remained resilient despite government tightening measures because of a number of loopholes, according to a report from ratings agency Fitch Ratings.
The Chinese Residential Real Estate Q and A highlights the measures employed by the government, and looks at the reasons why they are failing. For example, the central bank cut lending limits for mortgages, but this has not had as much as an effect as it should have because many buyers are cash buyers. According to the report, Fitch estimates “that this proportion of cash payment is in the region of 30% to 50% of new-build purchasers.”………………………………………Full Article: Source


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