Crossroads for property prices

Tightening monetary policies and affordable housing projects are pushing developers to rethink their strategy

In a move to reassess the ability of domestic commercial banks to cope with the growing housing lending risks, the China Banking Regulatory Commission conducted a stress test on these lenders in the second quarter.

In a recent interview with China Central Television, Liu Mingkang, chairman of the banking watchdog, revealed the results of the test showed domestic commercial banks can endure a 50 percent decline in house prices.