Official: China close to restricting debt on property purchases

11/9/2009 | Bloomberg

Worried about soaring asset prices, China's government soon might place new restrictions on the use of debt to purchase real estate. Fang Xinghai, director-general of Shanghai's financial services office, said China's central bank and banking regulator soon could scale back "leverage ratios" permitted on real estate investments. "Given the rise in asset prices, whether in real estate or the stock market, or some other kind of assets, there is a case for reducing the leverage in these areas, particularly in the real estate area," Fang said.

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