Bank of China cuts discounts on mortgage rates

Chinese banks have started to tighten mortgage lending, after the government indicated that it would curb excessive credit and check speculative investments in the property sector.

Bank of China (BOC), the nation's third largest lender by market value, said yesterday that it has cut the discount on mortgage rates offered to individual borrowers in an effort to improve its loan structure.

The bank, however, did not say to what extent it intends to scale back the preferential interest rates, but said it would decide permissible rate levels based on the credit history of clients.