China issues housing loans rules
AFP, Beijing
China has formally issued new regulations on housing loans that tighten avenues for credit as part of an ongoing package of measures to cool the sector and the economy as a whole, regulators said Friday. The China Banking Regulatory Commission (CBRC), which first published a draft of the pending rules in February, stipulated that developers would now have to put down 35 percent rather than 30 percent of a real estate project's total value. Retail investors must place a 20 percent downpayment on a property's ticket price, while individual loan applicants must ensure that monthly expenses do not exceed 55 percent of their total income instead of 70 percent. The rules apply to state-owned commercial banks, joint stock banks, city commercial banks, rural credit cooperatives, policy banks, as well as foreign banks, the CBRC said in a statement.
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