Shanghai's housing fund has stopped loans for third-home buyers, following cities like Beijing and Tianjin, which already adopted such measures in May, the Oriental Morning Post reported Friday, citing sources.
China's order for banks to transfer off-balance-sheet loans may lead to a large amount of bond issuance from real-estate companies, CLSA Asia-Pacific Markets said.
The China Banking Regulatory Commission's (CBRC) plan to conduct stress tests on lenders to gauge the impact of a fall in property prices has triggered fresh concerns that the realty price dip may cast a shadow on China's economic growth.
China's banking regulator on late Thursday said the hypothetical situations in the risk tests of banks, such as a possible slump in property prices, does neither indicate the regulator's judgment on the property market nor possible changes in government property policies.
The amount of shaky loans in Shanghai continues to grow every month despite new policies released in April designed to curb them, said Yan Qingmin, director of the Shanghai banking regulatory bureau.
China's banking regulator has run stress tests in the country's trust firms to see if they can withstand a downturn in the property sector, the Economic Observer reported on Saturday, citing unidentified industry sources.
China faces many challenges in its efforts to maintain the health of the banking industry, including risks from local government financing vehicles, property loans and industrial overcapacity, bank regulator Liu Mingkang said.
Would-be home buyers in Beijing have been jumping through hoops ever since new rules came in to make it harder to use false documents and lie when applying for favorable first-home loans.
Banks in some major cities have relaxed restrictions on handing out mortgages to third-home buyers, arousing speculation over possible changes to the government's tight policy stance on the overheated real estate market.
China's banking regulator said it sees growing credit risks in the nation's real-estate industry and warned of increasing pressure from non-performing loans. CBRC: Some banks trying to circumvent capital requirements
Some banks in China have transferred loans off their balance sheets in an effort to circumvent regulatory requirements and capital and loan-loss provisioning, the China Banking Regulatory Commission (CBRC) said Tuesday.
Chinese officials and banks must clean up their financing of local government-backed investment units under rules unveiled on Sunday, even as a top government think-tank expert said the overall situation is "far from dangerous".
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