Home 禄 Business 禄 Real Estate
Shanghai unveils new order to tighten realty financing
Print Edition
A new system to tighten inspection on real estate financing activities was launched in Shanghai yesterday following the People’s Bank of China’s month-long clampdown on gray-market mortgage operations.
The system will enable monetary authorities to decide minimum down payment, interest rates, application of differentiated policies on banks based on risk level, and release of assessment reports regularly to the public to manage market expectations, the Shanghai headquarters of the PBOC said in a report.
The Shanghai real estate financial macroprudential management mechanism will help authorities decide by analyzing real estate market conditions and banks’ operational quality, and by assessing the risks of lenders and borrowers, the report said yesterday.
The new system seeks to secure financing to the real estate sector that takes a third of the total loans extended by banks in the city.
“Shanghai is the first in China to launch a macroprudential management mechanism for the real estate industry,” said Zhang Xin, deputy director of the Shanghai headquarters of the PBOC. “It will enable us to monitor financial risks from every aspect and set a solid foundation for financial innovations and reforms.”
The new mechanism will complement the city’s current cross-border financial monitoring system focusing on the free trade zone and a comprehensive system collecting daily operational data cross industries and markets, Zhang added.
The system was launched after Shanghai’s local banking regulator earlier this week allowed business to resume between commercial banks and six real estate agencies after a one-month suspension to clean up gray-market mortgages such as offering illegal downpayment loans and bridging loans that bypass the banking system.
Such gray market activities were said to raise systematic risks on banks whose asset quality has worsened amid an economic slowdown.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
