China tightened real-estate financing by requiring developers to submit fund-raising plans for review, stepping up efforts to prevent a bubble even as the central bank pledged to maintain an “easy” monetary policy.
The China Securities Regulatory Commission has sent financing requests from 41 companies to the Ministry of Land and Resources for reviews of land-use compliance. Central bank Governor Zhou Xiaochuan said in a statement at an International Monetary Fund meeting in Washington the same day that China will keep its “relatively easy” monetary policy.
The two statements reflect policy makers’ aim of both damping a surge in domestic property prices and sustaining an economic rebound amid uncertainty about the strength of a global recovery. The latest move adds to curbs on loans for third-home purchases, increased down-payment requirements and higher mortgage rates announced this month.