China’s Property-Value Bubble is bursting?---Denise Xia

China Banking Regulatory Commission recently revised the Measures for Implementation of the Matters Subject to Administrative Licensing for Foreign Banks.

Pursuant to the Measures, administrative licensing is no longer required for matters such as provision of electronic banking services. Moreover, the licensing procedures are to be simplified, and prudential supervision is to be enhanced.

The purpose of the revise is to simplify the licensing procedures and shorten licensing scopes of foreign banks. And making full efforts to harmonize the market access of foreign banks and promote fair competition also.

That means more foreign banks will show in China. And more Chinese people will transfer its money to foreign banks if the foreign banks policy is more competitive and convenient than domestic banks.

Since domestic banks is the primary support of China’s real estate industry. Larry H.P. Lang, Taiwan economist used to say that if every Chinese people don’t save its money in the bank, then the money chain will be broken and China’s real estate industry will get corruption. So, what will happen if Chinese people transfer its money from domestic bank to foreign bank?

Moreover, Property purchasing policy is getting loose recently in many cities of China. Isn’t it the signs that China’s property value Bubble is bursting? Let’s see…