As the loan officers for a regional branch of a major Chinese bank were preparing to issue more loans their computer screens froze. It was not a system failure due to Vista problems, rather the bank’s intranet network had been deliberately shut down to stop new loans being made. Full article
The purpose of the above is to illustrate that if the authorities feel the need to control the property market, they can be ruthless.
China must tackle its property bubble for the sake of economic health and social stability, even if the market feels some short-term pain in the process, an official financial newspaper said on Thursday.
Monetary tightening, along with steps to control housing demand and expand supply, are the right policy choices for the government, the China Securities Journal said.
The front-page commentary adds to the impression that officials are determined to make a success of their latest crackdown on property speculation. Previous attempts to cool prices have been tempered by a fear of over-tightening because the property sector is a pillar of the economy. Reuters/ NYT report
So investors in S’pore property counters with big exposures in China, be warned.
I’m sure Temasek and its group cos are aware of how brutal the Chinese authorities can be.
But based on the Merrill Lynch/ BoA fiascos, who knows?