It will be difficult to determine the ultimate effect of the regulatory changes until they have all been finally defined and lenders gain familiarity with them. The implications for the housing market are also murky. Borrowers with lower credit scores have typically represented a significant segment of first-time homebuyers.
Graph 6 China – Household Income and Saving %  %  Disposable income  Saving ratio  Share of nominal GDP  Share of disposable income  70  40  65  35  60  30  55 1993  1998  2003  2008  1998  2003  25 2008  Sources: CEIC; RBA  In China, as in many parts of Asia, there is now a recognition that policies to promote consumption are likely to play a more important role than was previously the case.