Money

China curbs lending to developers to avoid risks

(Agencies)
Updated: 2010-10-20 10:36

China's banking regulator urged lenders to stop providing loans to developers who hoard land or delay property sales, an effort to help shield banks from risks in the real estate industry, Reuters reported on Wednesday, citing the China Business News.

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The China Banking Regulatory Commission also said in a notice that banks must not lend to property projects led by central-government owned companies whose core business is not property development, unless the project itself is used as collateral, the newspaper said.

China has banned lending to buyers of third homes, and it raised benchmark interest rates in a surprise announcement on Tuesday, in a bid to rein in inflation and curb speculation that threatens to create asset price bubbles.