Banking

CBRC: supervision of property-related trust businesses to continue

(Xinhua)
Updated: 2011-02-24 10:05

BEIJING - The China Banking Regulatory Commission (CBRC) said on Wednesday that its supervisionary policies and requirements for loans from trust firms to property developers remain unchanged, denying media reports that it has loosened restrictions.

A CBRC spokesman told Xinhua on Wednesday that the regulator would closely monitor the latest development of China's real estate industry and actively implement national real estate macro control measures and strengthen supervision of such businesses.

Related readings:  CBRC warns risks of property-related trust business  China's trust firms halt property loans: Report

The CBRC's statement came after local media reports said that the commission halted restrictions on trust companies' loans to property developers and restarted loans to property projects with lending rates above 15 percent.

In November last year, the CBRC instructed trust firms to start self-examinations, assessing the risks posed by their portfolios and tighten their loans to developers to rein in the country's surging property market.

Real estate-related investment products offered by Chinese trust companies have become an increasingly important alternative source of capital for housing developers looking to finance construction costs as other traditional sources of finance, such as bank loans, have been constrained by the central government to cool the housing market.

Further, local governments in China released a package of rules this month to restrict home purchases in many popular cities such as Beijing, Shanghai and Guangzhou in an attempt to rein in soaring property prices.