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China May Limit Banks' Mortgage Scales: Daily

CHINA PRESS
MNI (Sydney)

China may restrict banks' mortgage assets to less than 30% of their total by applying stricter reviews of loan qualification, size and maturity, reserving most of the quota for first-time buyers and those who intend to live in purchased properties, the Securities Daily reported on Tuesday citing Xu Xiaole, the lead analyst from the Beike Research Institute. The "debt reduction" signal from the authorities in August will place pressure on real estate financing in Q4, as companies boost capital through overseas financing, the Daily reported citing Zhang Dawei, an analyst from Centaline Property. The scale of financing in Q4 was likely to contract and real estate companies could move to promote sales to counter financing pressures, according to Pan Hao, another analyst from the Beike Research Institute.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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