Some banks and financial companies......>

CHINA PRESS: Some banks and financial companies are still making illegal

consumer loans for home purchasers or lack  procedures to make sure consumer

loans aren't being used to buy property, the Securities Daily reported Tuesday.

Over the past three months, Chinese regulators have been tightening policies to

prevent consumer loans that enable home purchasers to pay their mortgages or

down payments. The newspaper also reported that banks, under pressure to reach

their credit quotas at the end of the year, have been willing to accept some

"group purchases" of loans, under which financing companies buy a series of

loans at a lower interest rate. These financing companies then sell the loans

directly to consumers. The newspaper's investigation quoted one bank saying it

doesn't require invoices showing what the loans are used for and one finance

company saying "it's hard for banks to monitor where the loans go." (Securities

Daily)