Auto lending also has reportedly been solid, reflecting strong fundamentals in auto markets – such as robust demand for used cars and relatively low delinquency rates on existing auto loans. The strong fundamentals for auto loans in turn also appear to have contributed to an easing of lending standards and terms. But, as I mentioned earlier, residential mortgage lending has been particularly sluggish.
The other reason is that the administratively set prices were usually too low due to procedural shortcomings. In the early 1990s, once a stock was listed, its market price jumped sharply to much higher than the administratively determined price. The big jump in prices resulted in a huge profit margin and a channel for interests transfer.