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Central bank denies further moves to restrict property credit

(Agencies)
Updated: 2008-04-15 10:42

The People's Bank of China, or central bank, said it has not carried out additional measures to restrict property lending, contrary to rumors, the Shanghai Securities News reported, citing bank sources.

The bank was responding to rumors in the market that the government could carry out a nationwide investigation on speculative property investment, and use tax and other levers, including a tighter review of mortgage qualifications, to curb such investment.

The newspaper quoted sources from the central bank as saying that the bank has not notified commercial banks of any such measures.

It added that commercial banks have confirmed there are no additional restrictions on property lending.

The newspaper said the central bank's Shanghai headquarters conducted an investigation recently into Chinese and foreign banks' property lending. However, the investigation is routine, it said, citing an unidentified source from the China Banking Regulatory Commission.