[photopress:Guoshuqing200.jpg,full,alignright]At a financial conference Chairman Guo Shuqing of China Construction Bank, the country’s fourth-largest bank by assets, said the bank is keeping a close watch on risks from rising inflation and increasing real estate prices. Guo Shuqing is also an advisor on the central bank’s monetary policy committee.
He said, ‘Banks should be highly alert to inflationary pressures and a property price bubble.’
Guo noted that property prices have risen by an average of 6-7 pct in recent months. The central government has recently begun tightening credit and project approvals, particularly in the real estate sector, to head off asset price bubbles and overcapacity.
Source: Forbes