Large Medium SmallThe People's Bank of China's (PBOC) head office in Shanghai Head announced Friday evening that Shanghai will introduce macro-prudential regulating over real estate financing, the first among all cities in China to ensure long-term stable and healthy development of both the financial market and the real estate market.
Analysts say the move may be a signal for strengthening monitoring, analysis, and scrutiny over applications for mortgage and real estate development and trade financing, a positive for the long-term development of real estate market in the city and a better management of financial risks for the entire banking sector.
Authorities say real estate financing accounts for about one-third of the total credit size in Shanghai.
In a press release, the PBOC said the macro-prudential regulation is not just a scheme for the time being but a long-term guidance for improving real estate financing management.
