Home buyers preview real estate building models in Beijing. (File photo/Chinanews.com)
(ECNS) -- Guo Shuqing, the new chairman of China Banking Regulatory Commission (CBRC), said measures will be taken to curb real estate credit in markets with property bubbles and speculative boom. [Special coverage]
At a press conference on Thursday, Guo said a real estate bubble is one of the risks constantly mentioned by the banking sector and deserves special attention and prudent analysis .
China's real estate market varies sharply across different regions and cities so the level between a property bubble and risk is quite different, requiring banks to decide bank loan policies based on condition, it was added.
CRBC will pay close attention to the rapid growth of personal housing mortgage loans although generally the leverage ratio is not high, Guo said.
About one fourth of bank loans flows to the property market, with 45 percent of new loans in 2016 flowing into the sector.
Wang Zhaoxing, vice chairman of the banking regulator, said at the press conference that China has adopted a differentiation credit policy to prevent property bubbles and speculative investment. The banks want to see a stable, healthy real estate market without much fluctuations or bubbles.
