Will Credit crisis occur in China?

Will Credit crisis occur in China?
Feb 25, 2008 03:51
JOHNNY512 Points: Join Date: Nov 29, 2004 Status: offline	In recent days, some developers in Shanghai have started to give discounts to the customers. Wanke lowered the price by 5 percent and some other small developers even gave 15 percent discounts to promote their houses. For the reason, some people believe that the property market will shrink in 2008. So, the house prices will decrease too. According to the source, the house prices in Shanghai went down below 10000 yuan per squre meter last week. Banks in Shanghai are anxious about the house prices slide. It is said that the commercial banks have invested 32.2 percent loans in the property market by December in 2007. If the house prices slumps srastically, these banks will face credit crisis. On the other hand, the central bank might increase the interest rates to ease CPI. House prices slump and interest rates goes up. Those house slaves can't afford the payments for their houses and return bank's loan. Thus, the credit crisis might happen. Do you think credit crisis will happen?

Feb 25, 2008 03:51

JOHNNY512
Points:
Join Date: Nov 29, 2004
Status: offline

In recent days, some developers in Shanghai have started to give discounts to the customers. Wanke lowered the price by 5 percent and some other small developers even gave 15 percent discounts to promote their houses. For the reason, some people believe that the property market will shrink in 2008. So, the house prices will decrease too. According to the source, the house prices in Shanghai went down below 10000 yuan per squre meter last week.

Banks in Shanghai are anxious about the house prices slide. It is said that the commercial banks have invested 32.2 percent loans in the property market by December in 2007. If the house prices slumps srastically, these banks will face credit crisis. On the other hand, the central bank might increase the interest rates to ease CPI. House prices slump and interest rates goes up. Those house slaves can't afford the payments for their houses and return bank's loan. Thus, the credit crisis might happen.

Do you think credit crisis will happen?

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