Economic Policy News
- Restrictions to be put
Date: 17-Dec-2007 Sources: (Shenzhen Daily)
THE Chinese Government's decision of a tighter monetary policy has started taking shape fast with the China Banking Regulatory Commission or CBRC proposing Thursday new stipulations for property loans by commercial banks.
According to the proposal, measures will include restricting the total loan supply to property developers and investors as well as a potential floating loan rate.
The CBRC currently monitors property sector development in major cities across the country and analyzes the impact of various government measures on the sector. The average property prices in China's 70 big and mid-sized cities rose 10.5 percent in November from last year.
Bank loans for commercial estates totaled 4.62 trillion yuan (US$626.76 billion) in the first three quarters, an increase of 29.6 percent from a year ago. Of the total, 1.76 trillion yuan was lent to estate developers and 2.86 trillion yuan to mortgage borrowers. The surge was despite the government's efforts to curb money supply, credit growth and creation of asset bubbles.
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