China Banks Have Moderately Loosened Mortgage Lending: Observer

Chinese regulators have "absolutely" loosened policies against the property sectors and some Chinese banks have relaxed mortgage lending quotas since October, ordering branches to boost sales to high-credit customers, the Economic Observer reported citing an executive at a lender in central China. The newspaper reported after property stocks jumped last week and as real estate bonds also recovered. However, lenders remain cautious about loans to developers, assessing based on the cities and locations of the projects, and they are particularly careful with those developers that have run into liquidity challenges, the newspaper said citing the bank official. Local governments have also called for meetings with local banks fearing worsening crisis without adequate bank credit, the newspaper said.