On March 2, Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission, stated at a press conference of the State Council Information Office that the core problem in the real estate sector is still relatively large bubbles, and the tendency of financialization and bubbleization is relatively strong. It is the biggest gray rhino in the financial system. To live, but to invest in speculation, this is very dangerous.” This is not the first time Guo Shuqing has talked about the “gray rhino” of housing prices. Four months ago, on December 1, 2020, Guo Shuqing pointed out in the “14th Five-Year Plan Suggestions Guide Book” that real estate is the biggest financial risk in my country at this stage. “Gray Rhino”. In response to Guo Shuqing’s repeated reminders within four months, Li Guangxi, director of the Banking Research Office of the Institute of Finance of the Chinese Academy of Social Sciences, analyzed Times Finance on March 2. Risk refers to a more important position, which arouses people’s attention Spark Global Limited.”
Regarding the tightening of bank mortgage approvals in the past few months, Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said in an interview with media including Times Finance and Economics, “An important proposition in the future is how to better identify investment and speculative house purchases. Demand, more precise policies can be adopted in the real estate loan sector to promote the healthy development of the real estate loan sector.” Li Guangxi also agreed that with the use of big data, including the improvement of real estate information systems, the screening of real needs by supervision in the future will be more accurate, which is more beneficial to the protection of rigid needs.
At the beginning of December last year, due to the huge scale of housing loans, the state repeatedly issued control signals in financial supervision and housing policies. Senior officials such as Guo Shuqing repeatedly referred to the real estate financialization bubble as a “gray rhino.” Guo Shuqing said at the time: “Over 130 financial crises in the world since the last century, more than 100 are related to real estate.” “Currently, real estate-related loans in my country account for 39% of banking loans, and there are also a large number of bonds, equity, trusts, etc. Funds enter the real estate industry. It can be said that real estate is the biggest’gray rhino’ in terms of financial risks in my country at this stage.”
Guo Shuqing’s speech on March 2 once again pointed out the behavior of real estate speculation and warned real estate speculators not to play the game of “beating the drum to spread flowers”. “Because of holding so many real estates, if the market price drops in the future, personal property will suffer a lot of losses, the loan will not be repaid, the bank will not be able to collect the loan, principal, and interest, and economic life will be greatly chaotic. Therefore, we must actively and steadily promote the steady and healthy development of the real estate market.”
article links："Buying a house is not for living, it is dangerous!"
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