Metals Demand May Cool on China Bank Stress Tests, Analysts Say

Chinese metals consumption may cool if government orders for stress tests on banks to gauge the impact of a property price slump of as much as 60 percent indicate the market has further to fall, analysts say.

“If it’s true, the news will have a negative impact on the market as it could signal the government’s expectations for further property price falls,” said Fang Junfeng, an analyst at China International Futures (Shanghai) Co. China is the world’s biggest consumer of metals.