Banking regulator: property industry absorbed one fifth of new loans

The real estate market had become a key area of China's economic development and banking services, said Wang Zhaoxing, vice chairman of China Banking Regulatory Commission (CBRC), at a press conference held by State Council Information Office yesterday.

Currently, real estate development loans and individual housing mortgage loans account for 20 percent of Chinese commercial banks' new loans and outstanding loans. Regulatory authorities are urged to carry out effective risk control measures on individual housing mortgage loans to the speculative and investment demand.

The central bank encouraged commercial banks to support the demand for purchasing houses for self-living, but not the speculators, said Mu Huaipeng, director general of Financial Market Department of the People's Bank of China.

The State Council has just announced series of regulative policies towards the real estate sector. Minimum down payment of the second home was set to 40 percent, and the mortgage interest rate should be 110 percent of the benchmark interest rate.

By People's Daily Online