China warns of property-related financial risks
Updated: 2016-10-24 07:59
(Xinhua)
|
||||||||
People look at a housing project near the Dianchi Lake in Kunmin, Southwest China's Yunnan province, on Oct 21, 2016. [Photo/VCG] |
China's banking watchdog has ordered strict control of financial risks related to real estate as bank loans to the sector surged.
Regulations over property loans must be rigorously implemented, and financial business related to real estate agents and developers should be conducted in a prudent manner, according to a statement on the website of the China Banking Regulatory Commission (CBRC).
Irregular inflow of loans or wealth management funds into the property sector must be banned, said the statement.
By the end of September, financial institutions in China had lent 25.33 trillion yuan ($3.74 trillion) to the property sector, up 25.2 percent year on year, central bank data show.
While the property sector has been a significant growth driver for the Chinese economy so far, policymakers have tried to prevent an asset bubble following drastic price rises in some first- and second-tier cities.
As a result of government curb policies, including purchase limits and tightened mortgage restrictions, the month-on-month price index for new homes in 15 first- and second-tier cities retreated in the first half of October from September, according to the National Bureau of Statistics.
The CBRC also urged efforts to avert risks related to local government debts and industrial sectors with excessive capacity.
- Ten photos from around China: Oct 14-20
- Veterans mark 80th anniv. of end of Red Army's Long March
- Road with 24 bends zigzags in Southwest China
- Trump refuses to say he will accept election results
- Top guns: Airshow China in past two decades
- Street photographer captures hustle-bustle of Beijing
- Five-time Olympic champion diver Chen Ruolin retires
- Glimpse into lifestyle of astronauts in space
Most Viewed
Editor's Picks
Anti-graft campaign targets poverty relief |
Cherry blossom signal arrival of spring |
In pictures: Destroying fake and shoddy products |
China's southernmost city to plant 500,000 trees |
Cavers make rare finds in Guangxi expedition |
Cutting hair for Longtaitou Festival |
Today's Top News
'Zero Hunger Run' held in Rome
Trump outlines anti-terror plan, proposing extreme vetting for immigrants
Phelps puts spotlight on cupping
US launches airstrikes against IS targets in Libya's Sirte
Ministry slams US-Korean THAAD deployment
Two police officers shot at protest in Dallas
Abe's blame game reveals his policies failing to get results
Ending wildlife trafficking must be policy priority in Asia
US Weekly
Geared to go |
The place to be |