Those exceeding the cap will have a grace period of up to four years to meet the requirements. New home prices grew by 0.12 percent last month, the slowest pace since February, as wider property curbs cooled demand, prompting developers to cut prices. Banks will be put into five categories and subject to different ceilings on their loans to developers and home buyers. While most of them had their current real estate exposure within the limits, those failing to comply will face additional capital charges, according to the statement. The new policy can “help market participants form stable policy expectations, and help promote stable, healthy and sustainable development of the real estate market,” the statement said.

Source: The Standard December 31, 2020 12:03 UTC