Chinese Banks Tighten Lending to Real Estate Developers to Cool Housing Market
Yicai Global
/SOURCE : Yicai
Chinese Banks Tighten Lending to Real Estate Developers to Cool Housing Market

(Yicai Global) Aug. 11 -- Some Chinese banks are cutting the loan term period to property developers from two years to as little as six months in an attempt to curb the housing bubble.

Banks such as the Industrial and Commercial Bank of China have reduced the duration of loans to real estate developers, Xinhua News Agency said.

By cutting the loan term period to property developers, the banks can reduce its financial risks. Shortening capital turnover puts pressure on the funding chain for real estate companies.

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