China warns banks on real estate loans

Note: This section contains information in English only.
Source: Bloomberg

Chinese banking regulator alerts lenders that several projects financed by local municipalities may experience problems with funding liquidity. Regulator also admitted that loans on real estate are expected to taint as sales decline. Last week China Banking Regulatory Commission advised banks to reduce high risk loans to local governments. In October property sales experienced drop of 25% compared to September.

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