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PBOC Report focuses on housing market, overcapacity and internet finance

Updated: Aug 8,2017 10:05 AM

China’s central bank recently released a report spelling out guidelines for housing loans, funding for over-capacity companies and internet finance.

The People’s Bank of China (PBOC) said it will tighten mortgages to limit speculation, with the aim of keeping property prices in check, noting that the potential for higher housing prices is still strong.

The PBOC said this is because of a lack of land supply, low inventory, and limited investment channels. It also suggested methods such as building up a comprehensive national housing market system, balancing land use for urban development and farming.

Meanwhile, another H2 mission in Chinese financial market is to eliminate financial risks in excess capacity sectors.

The PBOC stressed that de-capacity should follow market rules, guiding governments to push for mergers and acquisitions, bankruptcy and liquidation to get rid of “zombie enterprises”.