‘Gray rhino’ real estate risks need to be tamed

Multiple measures: A worker cleans the windows of an apartment block in Beijing’s central business district. The main aim of the Chinese government is to stabilise home and land prices and temper market expectations. ─ Reuters

SHANGHAI: China’s property market is the biggest “gray rhino”, a very obvious yet ignored threat, in terms of financial risks, given it is so deeply intertwined with the financial industry, and it is necessary to keep real estate loan risks under control for the stable development of the property market, a top regulatory official has reiterated.

“Many people decided to buy property for investment or speculation, not for living, which is very dangerous, ” Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said during a news conference.