China acts to prevent business loans flowing into property market

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Beijing

Chinese authorities moved Saturday to tighten the regulation of business loans to prevent them from illegally flowing into the property market.

Banking financial institutions should be stricter on verifying the qualifications of business-loan borrowers, according to a document jointly issued by the China Banking and Insurance Regulatory Commission, the Ministry of Housing and Urban-Rural Development and the People’s Bank of China.

Enterprises without any actual business should not be granted business loans, while new enterprises that have been established or received equity rights for less than a year, as well as borrowers who have been in possession of a mortgaged property for less than a year, should undergo more stringent examination, the document said.—Xinhua