The planned economy in China could lead to a cooling of the property market in certain cities, a Deutsche Bank report observed, pointing to a potential property bubble that might result in capital outflows. Earlier this month an HSBC report stated that China's property bubble was more significant than the US sub-prime market in 2008.
Central planners putting dampener on real estate market
The Chinese central planners, seeing a hot property market in tier 1 and 2 cities since late September, have rolled out a series of government restrictions to influence market scales. The tightening measures include local purchase restrictions, raising mortgage down payment ratios, and tightening developers’ financing, the October 21...
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