CBRC says housing loan risks still high

Chinese banking regulators warned that risks related to property loans remain high, and vowed to keep a close watch on such lending this year.

"Pressure from risks posed by property loans is still rising. These potential risks cannot be neglected," Wang Zhaoxing, a vice-chairman of the China Banking Regulatory Commission, was quoted as saying by Financial News on Thursday.

He said a high level of liabilities has been accumulated by developers, with more than half of such companies suffering from negative cash flow in the first three quarters of 2012.