Economy

Chinese banks told to rein in property lending

(Agencies)
Updated: 2010-12-08 09:27

Beijing -?China's banking regulator has ordered lenders to tighten controls on their loans to property developers,?its national?television reported on Tuesday.

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"It ordered banks to reinforce investigations before extending the loans and strengthen oversight after the loans are made," the television said.

In September, the China Banking Regulatory Commission (CBRC) sent a list of property developers under the central government to lenders, it said without elaborating.

Domestic media reported earlier this week that CBRC ordered banks to confine their new loans to 16 developers on the list.

China ordered State-owned firms to divest from the real estate industry, except those with property development as their core businesses.

In addition, Beijing has issued a slew of measures in recent months to cool the red-hot property market, including raising mortgage rates and down payments.