Shanghai should keep tight grip on real estate lending:Central bank branch

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By: Winni Zhou\ John Ruwitch

SHANGHAI: Commercial banks in Shanghai should continue strictly implementing a tight policy on real estate lending, the Shanghai branch of China’s central bank said on Wednesday.

The authority also urged banks in the city to strengthen their checks on sources of down payment funds for real estate purchases, the People’s Bank of China’s Shanghai branch said in a statement published on its website.

Municipal authorities in Shanghai tightened mortgage down payment requirements for second home purchases in March, in a move to cool an overheating property market and reduce fears of a bubble. (Editing by Jacqueline Wong)

Source: Reuters