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Curbing home loans in gray market
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CHINA will act hard against home loans raised in the gray market to ward off risks, a central bank official said on Saturday.
The practice of granting loans by real-estate developers and agents to home-buyers for downpayment raises risks to the property market and financial system, said Pan Gongsheng, vice governor of the People's Bank of China, on the sidelines of the annual parliamentary session in Bejing.
The central bank will work with other government agencies to rectify the problem, he said.
The PBOC cut downpayment requirements for home purchases in most cities in February.
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