China’s banking regulator has instructed lenders to tighten their scrutiny of loans for mergers and acquisitions to ensure that capital isn’t diverted to buy land, dousing the debt-fuelled boom in second-hand land sales as developers sought to find land to build on.
Banks must comply with current policies on M&A loans and ensure these funds aren’t used in deals where land is the main underlying asset, according to a January 24 circular by the Shanghai branch of the China…
Source : South China Morning Post
Read more…China’s regulator pours cold water on debt-fuelled land purchases, starting with Shanghai















