They cautioned that if investor lending and house price inflation do not slow appreciably, these policies may need to be intensified. ﻿Experts are warning that while the Chinese property market is known to be overvalued, and while it is known that a correction is necessary, the government simply cannot afford to allow the market to burst, as the effect would be too detrimental to the Australian banking systems. Despite these concerns, Australian regulators have in fact tightened the banks' lending to the property sector, by forcing them to hold a higher percentage of their lending as reserves. This report also highlights that in the event of ﻿political or economic turmoil in Australia , a huge wave of Australian ﻿ the International Monetary Fund will hit the Australian property market; this article claims that China would not be prepared for such an influx.﻿
﻿Experts are warning that while the Chinese property market is known to be overvalued, and while it is known that a correction is necessary, the government simply cannot afford to allow the market to burst, as the effect would be too detrimental to the Australian banking systems. Despite these concerns, Australian regulators have in fact tightened the banks' lending to the property sector, by forcing them to hold a higher percentage of their lending as reserves. This report also highlights that in the event of ﻿political or economic turmoil in Australia , a huge wave of Australian ﻿ the International Monetary Fund will hit the Australian property market; this article claims that China would not be prepared for such an influx.﻿