Property News · February 1, 2018

China’s regulator pours cold water on debt-fuelled land purchases, starting with Shanghai


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
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