Financial News
Written by: Zhang Weilun
2021-01-04 11:20
Last update date: 2021-01-04 11:20
The People's Bank of China and the China Banking and Insurance Regulatory Commission imposed restrictions on real estate loans from mainland banks, prompting mainland banking stocks to generally decline this morning.
Industrial and Commercial Bank of China (1398) last reported 4.86 yuan, down 3.4%, China Construction Bank (0939) last reported 5.73 yuan, down 2.7%, Bank of China (3988) last reported 2.62 yuan, down 1.1%, and China Merchants Bank (3968) latest reported 46.65 Yuan, down 4.8%.
Mainland property stocks were also under pressure. China Evergrande (3333) last reported 14.02 yuan, down 5.9%, Longfor (0960) last reported 44.55 yuan, down 1.9%, and Chuangrong (1918) last reported 26.77 yuan, down 6.8%.
The People’s Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the “Notice on Establishing a Centralization Management System for Real Estate Loans of Banking Financial Institutions”, setting limits on the proportion of bank real estate-related loan balances, including large state-owned banks, and the upper limit of the proportion of real estate loans is 40 %; the upper limit of medium-sized banks covering joint-stock banks is 27.5%; the upper limit of the proportion of personal mortgages for large banks is 32.5%, and that for medium-sized banks is 20%.
The People's Bank of China and the China Banking and Insurance Regulatory Commission stated that most of the banking financial institutions currently meet the management requirements and will take additional capital requirements and adjust the risk weights of real estate assets for banking financial institutions that have not implemented the notice requirements.
People's Bank of China Banking Insurance Regulatory Industrial and Commercial Bank China Merchants Bank Bank of China China Evergrande Longfor Real Estate Sunac China