China – signs of slowdown

Recent reports from the China National Bureau of Statistics show that home prices have fallen up to 50% in many parts of the country in the period from July to September. But what about speaking the government reports? Well, The most significant contributor to the price decline is tightening credit ; after dumping trillions of dollars into the economy to ward off the effects of the global financial crisis, the Chinese government is now pressuring banks to reduce loans. This is bringing much of China’s credit-intensive economy to a screeching halt. So much for China leading the world out of the global financial crisis. And it doesn’t just affect the property market.

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