Experts urge differential mortgage policy

(Xinhua) Updated: 2014-09-24 09:42

The central bank has not made any comment on the reports. However, some local governments have implemented similar measures.

Officials of Fuzhou, capital city of east China's Fujian Province, said locals will be regarded as first-time home buyers if they have paid back loans for their previous home. Two cities, Nanjing and Hangzhou, as well as central China's Hubei Province, implemented a similar policy shortly after.

Though the central bank has not made any announcement, two of China's four major banks have given ambiguous responses to the media reports.

The Industrial and Commercial Bank of China (ICBC), the country's largest bank, and the China Construction Bank (CCB) both said they support individual's demand for mortgage but avoided commenting on the murmurs of relaxed mortgaged lending.

Without giving a direct answer, an ICBC official said "we seriously implement the country's policy directions concerning the housing market, and we have been actively supporting the rational demand of personal housing and property development," according to the official China Securities Journal.

The CCB likewise told Xinhua that the bank has always been backing individual mortgage and will continue to support residents to improve their living conditions.

In addition, the CCB advised accelerating the establishment of a differential policy on home loans that will restrain speculative investment but support home purchase to improve living conditions.

"The ICBC is closely watching the changes in the property market and adjustments in related policies. We will timely take follow-up actions for relevant credit policies and continuously improve correspondent financial services," the ICBC added.

The four banks are to announce new rules which will ease the mortgage policies, the official Shanghai Securities Journal reported earlier on Tuesday, citing unconfirmed sources.