China's property bubble threatens to downgrade banks ' price adjustment will not exceed 10%

Xinhua Beijing, November 4, according to the Hong Kong Wen Wei Po, the international credit rating agency Fitch Fitch International Asia-Pacific sovereign rating Managing director Mike (James McCormack) pointed out that China's soaring property prices since this year, causing market concerns about the quality of bank assets, and the banking system is a weak part of the sovereign rating,　　Any country with a property bubble could lead to a decline in the quality of its banking system assets.　　reported that in the first 9 months of this year, China's banking sector new loans amounted to 8.67 trillion yuan, up from last year's annual increase of 75%, triggering a market for banks to generate bad debts worries.　　The chairman of the China Banking Regulatory Commission, Mr Liu, has also issued a warning and asked banks to arrange loans reasonably. To further strengthen the ability of the mainland banks to withstand risks, recently, the CBRC held the 09 three-quarter large-scale bank risk analysis, the CBRC party committee Deputy secretary, vice chairman Banding to include ICBC, ABC, BOC, CCB and the five banks of the risk of the chief, Risk Management department, to do a good job of risk management, Banks are again required to increase the provision of non-performing loans to more than 150% of the coverage.　　At the same time, Shing stressed that the five major lines should implement the national industrial policy, strict restrictions on overcapacity industries and repeat construction industry loans. In addition, Citic Ka Wah Bank senior vice president and China business chief economic strategist Qun said that there is still a certain bubble in the mainland property market, the mainland is expected to extend the adjustment period to the next year, I believe that the overall housing adjustment will not exceed 10%, and high-end residential housing adjustment should be limited.