Follow us on TWITTER: twitter.com Like us on FACEBOOK: www.facebook.com Last month property transactions in Chinese cities were down 39%, a “dangerously low level.” The China Banking Regulatory Commission has yet to release the stress test results of declined bank loans and housing prices. Economist Qi Yanchen believes that it is because the Banking Regulatory Commission neglects to consider the impact that decreased bank loan volumes and housing prices would have on collateral and other bank related businesses. The UK “Financial Times” reported on the 22nd, “In October, however, property transactions fell 39% year-on-year in China』s 15 biggest cities, according to government data. Nationwide, transactions dropped 11.6 per cent, accelerating from a 7 per cent fall in September.” It was analyzed that, “The fall-off in transactions has affected developers』 cash flows and, in some cases, their ability to repay bank loans.” Chinese economist Qi Yanchen Qi believes that once the Chinese property industry falls into a depression, related industrial chains, especially cement and steel will suffer. Consequently, the pressure on the Chinese banks will be overwhelmingly large. Chinese economist Chen Qi Yan: “Cement and steel will be the two industries suffering from the declined property values. The operation of these two industries basically relies on bank loans and a loose monetary policy. Therefore, with the declined property industry, the developers won』t be able to afford …