Great as always Maneco!

I will provide some commentary on the Australian housing market as I had spent a number of years working in the finance sector.

Our housing market with regards to finance, I believe is one of the better regulated markets. I think the expiring of interest only terms is a bit of a non-issue for the following reasons:

1. When assessing borrower's ability to borrow from the bank, the bank was generally assessing debt with a buffer of 3% and on principal and interest repayments. Thus any rise in interest rates/switch to principal and interest has already been accounted for when the loan was first ran through servicability.

2. APRA which is the regulator responsible for overseeing the banks have recently loosend their requirements on investor loans after having a cap on them for around 2 years. Banks could previously not have their investor loan book grow by above 10%. This signals APRA is happy with the state of affairs in the investor market.

3. Most interest only terms are easily rolled-over into new 5 year terms. Banks are happy to do this as they are gaining more interest,

4. The value of house prices have increased significantly from the start of 5 year interest terms. The loan to value ratio of most banks would books would be around 50-70% I believe.

As for the Petroyuan, I believe some local firms here in China are very much 'encouraged' to trade the contract...