China tightens control over mortgage loans

China tightens control over mortgage loans
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The Government of China will tighten control over a process of granting mortgage loans for the purpose to curb a surge in real estate prices, Bloomberg reports citing its informed sources.

A number of credit institutions in some cities of the country received instructions to suspend mortgage lending to the people, the sources said. These instructions were given in a verbal form and there is no information on which specific cities faced restrictions, nor the time period of these restrictions is known.

Apart from that, banks in the city of Shanghai were told not to increase volume of granted loans in comparison with the previous months.

It is stated that the Chinese authorities are following closely the growth of real estate prices in the country, since this trend reduces availability of housing and might negatively affect sales and construction of houses.