Two State-owned banks halt loans intended to land development

According to media reports Thursday, China's State-owned Agricultural Bank of China (ABC) and China Construction Bank (CCB) have suspended granting loans to property developers intended to land development.

ABC issued an order to its branches Monday to stop until September, the offer of loans to the property development sector. CCB did the same only that it did not reveal the resumption of the loans.

The reports said the move was the response to a verbal request from the China Banking Regulatory Commission (CBRC).

An unnamed industry source confirmed to the Global Times that both ABC and CCB have stopped offering the loans.

Other State-owned banks disclosed that the same information was not directed to them.

Wu Yonggang, analyst from Guotai Junan Securities, said that ABC's decision may be an attempt to control the outflow of loans at the end of the month.

Source: Global Times