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China Runs Stress Tests On Property Trusts: Report

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China's banking regulator has run stress tests in the country's trust firms to see if they can withstand a downturn in the property sector, the Economic Observer reported on Saturday, citing unidentified industry sources.

Chinese developers have been using property trust products sold by the trust companies as a channel to raise funds for new projects.

Trust firms are required to submit information about their exposure to the real estate sector, including investment sizes, collaterals and risk control measures, to the China Banking Regulatory Commission (CBRC), the newspaper reported.

The stress tests on trust firms were conducted as the government tightened measures in the real estate sector to curb runaway property prices. Chinese banks were also told by the CBRC to conduct similar stress tests and to keep tight control over property lending.

The newspaper said the stress test results may result in less funding to property development from trust firms.

In the first half of this year, Chinese trust firms issued property trust investment plans totalling 67.7 billion yuan (nearly 6.5 billion pounds), compared to 40 billion yuan for the whole of 2009, the newspaper reported.

In comparison, bank loans went to property developments were 442.3 billion yuan in the first half, the People's Bank of China said.

Wow a stress test recovery.

Is this the new economic fad?

Luckily property is a one way bet so nothing to worry about...

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Wow a stress test recovery.

Is this the new economic fad?

Luckily property is a one way bet so nothing to worry about...

It's stressful for the staff and the execs, their bonuses and jobs rest on the results.

Stress Test is the new Elephant in the Room phrase. Basically, if you hear someone say it then you can walk away knowing they are simply an idiot.

Where did Elephant in the Room come from? I believe USA but what was the point. If I saw an elephant in a room I would be pointing, and asking what sort of moron bought an elephant into the room and why. Whereas the actual inference is that every one sees it but no one talks about it ?!? Really I don't understand it. If someone can please explain.

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The Oxford English Dictionary gives the first recorded use of the phrase as The New York Times on June 20, 1959: "Financing schools has become a problem about equal to having an elephant in the living room. It's so big you just can't ignore it."[2]

This idiomatic expression was in general use much earlier than 1959. For example, the phrase appears 44 years earlier in the pages of a British journal in 1915. The sentence was presented as a trivial illustration of a question British schoolboys would be able to answer, e.g., "Is there an elephant in the class-room?"[3]

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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