BEIJING, Sept 13 China's bank regulator has
urged banks to guard against risks in commercial real estate
projects that have been targeted by speculative investment, the
China Securities Journal reported on Tuesday, citing an unnamed
China's measures aimed at curbing excessive home price rises
have resulted in some speculative capital flowing into
Banks should strictly monitor risks when they make loans to
commercial property projects and set a higher criteria for
approving such loans than for home mortgages, the newspaper
Banks are banned from rolling over existing loans to
commercial properties and they should improve collateral
management to guard against possible risks.
The new order also asked banks to monitor property market
risks in second- and third-tier cities where purchase
restriction policies have not yet been imposed.
Beijing has expanded the home purchase restrictions to some
second- and third-tier cities to rein in home prices. It also
urged local governments to step up efforts to cap property
prices within a previously set ceiling.
China's property investment and sales in August grew at a
slower annual pace than in the first seven months, official data
showed on Friday, indicating Beijing's efforts to rein in the
red-hot real estate sector have started to have the desired
(Reporting by Aileen Wang and Kevin Yao; Editing by Ken Wills)