China / Government

PBOC introduces new regulations on real estate financing

By Wu Yiyao in Shanghai ( Updated: 2016-06-03 21:37

The People's Bank of China's (PBOC) head office in Shanghai Head announced Friday evening that Shanghai will introduce macro-prudential regulating over real estate financing, the first among all cities in China to ensure long-term stable and healthy development of both the financial market and the real estate market.

Analysts say the move may be a signal for strengthening monitoring, analysis, and scrutiny over applications for mortgage and real estate development and trade financing, a positive for the long-term development of real estate market in the city and a better management of financial risks for the entire banking sector.

Authorities say real estate financing accounts for about one-third of the total credit size in Shanghai.

In a press release, the PBOC said the macro-prudential regulation is not just a scheme for the time being but a long-term guidance for improving real estate financing management.

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