So far, all of Chuanghui's offices in Guangzhou, Foshan, Zhongshan and Dongguan have been closed while dozens more in Zhuhai and Huizhou suffered the same fate, with only about one third of its branches still in operation in Shenzhen, its headquarters, according to local media reports.
The central government's tightening credit controls over second and multi-home mortgages have begun to bite in China's real estate market with transaction volumes falling considerably.
In September, the central bank and the China Banking Regulatory Commission announced that mortgage holders who apply for another home loan are required to make a downpayment of at least 40 percent and pay a 10-percent premium on interest rates and the requirement on third or fourth mortgage will be stricter.
The requirement on first mortgage, meanwhile, remains unchanged - up to 30 percent downpayment and a 15-percent interest discount.
