China’s banking regulator has told lenders to conduct a new round of stress tests to gauge the...

|By:, SA News Editor

China’s banking regulator has told lenders to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 60% in the hardest-hit markets, sources say. The government probably doesn’t expect prices to fall so much, an analyst says, but it wants to show that its banks are sound even with a significant drop.