China bank regulator warns banks on real estate and stock market asset bubbles

Discussion in 'Economics' started by ASusilovic, Jul 28, 2009.

  1. Chinese regulators on Monday ordered banks to ensure unprecedented volumes of new loans go into the real economy and are not diverted into equity or real estate markets where officials say that asset bubbles are forming. The new policy requires banks to monitor how loans are spent, after warnings that they ignored basic lending standards in the first half as they rushed to extend Rmb7,370bn in new loans, more than twice the amount lent in the same period a year earlier.

    http://ftalphaville.ft.com/blog/2009/07/28/64016/china-warns-banks-on-asset-bubbles/

    "Real economy"? Still healing from last bubble...
     
  2. China is bubble-licious.

    I just posted an article by Pesek who just returned from China, and said that a ton of the stimulus money the government has granted out directly and by pressuring banks to dramatically loosen loan standards has gone into the equity markets.