Giant slides could be the answer to China’s declining retail fortunes
China’s retail space glut is at least bringing consumers more entertainment options as mall operators turn to giant slides and other attractions to fill empty shopping centres. In the residential market one of the major credit agencies is pointing to greater risks as mainland homebuyers lever up and Australia’s biggest banks have discovered that some people don’t tell the truth on loan documents if they don’t have to. Read on for all these stories and more.
Facing Decline, China Mall Developers Turn to Slides
Inside a shopping center east of the city, a gigantic slide snaking down from the fifth story elicited screams and squeals from people taking part in test rides.
“After a while it wasn’t that scary,” said Song Yucheng, a 10-year-old who was one of the first to test the slide. “I’m going to ask my friends to try this too.” Read more>>
Rising Mortgages Raise China Credit Risks Says Fitch
Strong growth in new lending to China’s residential mortgage sector brings additional credit risks, says Fitch Ratings. New mortgages of CNY2.2trn (USD344bn) accounted for 45% of the increase in total loans at 14 rated Chinese banks in 2015 (2014: 25%), as weaker economic conditions suppressed demand for other types of lending and loans-for-bonds swaps distort data for infrastructure loans. Mortgages made up a fifth of banks’ loan books at end-2015. Read more>>
Dodgy Documents Found in Foreign Mortgage Applications Down Under
Two of Australia’s largest lenders, which tightened home loans to some foreigners, said they uncovered mortgages backed by questionable overseas-income documentation.
Australia & New Zealand Banking Group and Westpac Banking Corp have identified issues with some loans that rely on foreign income for approval, the two lenders said in separate emails. Read more>>
New Wave of Home Purchase Restrictions Could Be on Way in China
It could be curtains for the loose policy environment in China’s property sector after warnings by a People’s Daily article against debt-fuelled growth, say analysts.
The article published on Monday cited an unnamed“authoritative” source as saying that boosting growth by increasing leverage is risky and “unrealistic”, warning that a high leverage ratio could trigger a systemic financial crisis. The source is believed to be from a top Chinese policymaking body. Read more>>
Serviced Apartment Operator Launches Fourth Shanghai Property
Lanson Place Hospitality Management Limited (“Lanson Place”), a Hong Kong-based high-end hospitality management brand in Asia, is pleased to announce the opening of Parkside Serviced Suites by Lanson Place in Shanghai today, which marks the tenth property under the Group and the fourth operation in Shanghai. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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