Published on 23.08.2011
Greater China Quarterly Q2 2011 - Prices Stable Despite Sales Drop
In the second quarter of 2011, initiatives by the Mainland Chinese government to cool the residential property market were still very much in evidence. RMB-deposit reserve rates were raised to a historical high of 21.5% in major financial institutions. In order to suppress inflation, the central bank raised RMB-deposit and loan interest rates of financial institutions by 25 basis points on both 6 April and 7 July. These credit-tightening policies resulted in further restrictions in financing for developers, an increase in burden for homebuyers and a strengthening of the wait-and-see atmosphere in the market.
Full article at hktdc.com