The CBRC's Shanghai branch issued an....>

CHINA PRESS: The CBRC's Shanghai branch issued an internal regulatory guidance

to banks earlier this month, stressing that bank loans for acquisition in the

property sector need to be strictly controlled, Caixin reported on Wednesday

night. 

 - The guidance pointed out commercial banks' loans for acquisitions in the

property market comprise a high percentage of overall acquisition loans 

 - The guidance, not formally released to the public, stressed the following:

banks cannot give loans to property developers without proper licenses; the

loans cannot be used to purchase land; and the loans cannot be used for anything

other than acquisitions. 

 ***COMMENT: This is one of the first regulatory measures in line with a goal

that CBRC listed last week: to control credit flowing to the property market,

and to crack down on banks' activities against the country's property control

policies.