The new boss of the Chinese bank regulator system assured that China wants to tackle property speculation and unregulated finance by clearing the regulatory “chaos” that has fueled the surge of an uncontrollable debt.
The bank’s primary mission should be to “support the real economy,” said Guo Shuqing, chairman of the China Banking Regulatory Authority (CBRA) for three days at a press conference.
“Commercial banks must tackle zombie companies, which are the origin of the problem, and actively explore ways to address debt problems,” he said.
During years, real estate speculation has led to a downward spiral of housing price surge, unplanned construction sites and empty houses in what is known as China’s “ghost cities”. In a 2015’s post, we were already talking about the Chinese housing bubble and its potential burst. 2 years later, the government regulations to cool down the property market seems to show positive results.