Call me too contrarian here, but it actually seems like good news for China’s property market when the vast majority of bankers involved are worried about a crash…
72% of Chinese bankers believe that a large ‘property market correction’ is China’s #1 threat, according to a new survey of 70 senior bank executives by PricewaterhouseCoopers and the China Banking Association, reported via China Daily.
75% of the bankers still believe that the Chinese property market faces ‘great uncertainties’ and two thirds plan to restrict property lending growth or transaction size. Most of them expect prices to fall in the near-term, and 70% are worried that loans to local governments could cause a banking crisis.
Did we see such levels of concern from the U.S. banking community ahead of the U.S. crisis? It’s almost comforting.
You have to wonder if China has already scared itself out of having a major crisis here. The survey results above don’t exactly sound like a bubble mentality.