China press – Asset bubbles in property, securities & commodities markets
|The 21st Century Business Herald reports, citing a source close to regulators, the authorities, including the China Banking Regulatory Commission, have realized the Asset bubbles in the property, securities and commodities markets are likely to result in bad loans and could even affect the financial stability of the banking system.
Bad loan risks from shadow banking activity should also be controlled strictly, it says. The CBRC has proposed tightening rules on investment in wealth management products, MNI reported Wednesday.
Curbing asset bubbles in the property market is a key for lowering business costs and preventing financial risks in China, Business Herald says. It adds further, “Growing leverage in the property market mainly contributed to economic growth in the first half of the year”.
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