Courtesy of this blog. And look at the money supply charts too.
No wonder China’s banking regulator told lenders last month to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 6o% in the hardest-hit markets. Banks were instructed to include worst-case scenarios of prices dropping 50- 60% in cities where they have risen excessively. Previous stress tests carried out in the past year assumed home-price declines of as much as 30%.
Expectations seem to be for a sharp decline in Chinese property prices over the next two years, with some, and perhaps significant, impact on Chinese banks.
Some time back it was reported that Temasek had emerged as one of the top 10 acquirers in the Greater China region,
after doing six deals worth US$1.47 billion since 2005. According to a market M&A report commissioned by Deloitte, Temasek is ranked No 9 – after Morgan Stanley and Goldman Sachs, which are No 7 and No 8 respectively. The report ranks the 10 top acquirers based on mid-market transactions – each valued at between US$50 million and US$500 million – from 2005 onwards. Temasek bought into Li & Fung, Asia Container Terminals, Keen Sales, aHopson Development Holdings, Sichuan Jiuda Salt Corporation and Hengda Real Estate Group. The data does not include its 2005 stake acquisitions in Bank of China and China Construction Bank as they do not fall under the mid-market range, as well as Temasek’s reported “latest US$200 million subscription of shares in Agricultural Bank of China in its Hong Kong IPO”. Or is this the stake that StanChart took. I suspect the latter.