China Not Easing Lending to Property Industry: Daily

China has not opened the "floodgate" controlling credit to the property industry, nor will it ease its regulatory efforts, the Economic Daily said citing interviews of officials and lenders. While mortgage rates in about 20 cities have declined, including Guangzhou and Shenzhen, they were due to declining demand as falling home prices caused buyers to sideline from purchases, the newspaper said citing Deputy Director Zeng Gang of the state-affiliated thinktank National Institution for Finance & Development. Regulators were also ordered to prioritize loans to first-time buyers, so lenders have given more favorable rates, Zeng said. First-time buyers accounted for 92% of the home purchases at the end of July, he said. Mortgage rates in Beijing have not fallen, the newspaper said. Regulators are still toughening measures to prevent misusing loans to purchase properties, said the daily.