Property transactions in large Chinese cities have fallen to levels which may pose a danger to Chinese banks and the economy as a whole, the Financial Times reported, according to documents obtained by the FT. The China Banking and Regulatory Commission instructed banks to conduct “stress tests” on the impact of a 30% decline in housing transactions and a 50% decline in prices. However, October saw a 39% decline in transactions in large cities, and 11.6% nationwide. This fall-off has reduced developers’ cash flows, and led to rising loan defaults. Though the documents have not been released by the CBRC, one analyst said they do not address the impact of a reversal on bank collateral. Officials privately admit shortcomings in the tests, which imagines the drop would not have any effect on the larger economy.