Shenzhen Tightens Lending, Shanghai Prepares Buying Restrictions

Bloomberg: Shenzhen's Banks Asked to Tighten Mortgage Loan Standards
Mortgage leverage in Shenzhen has been far higher than in other first-tier cities since 2015, and has accumulated risks, according to the statement from the Financial Society of Shenzhen Special Economic Zone, a research unit under the local branch of the People’s Bank of China. Banks should “appropriately control” the total size of home loans and decide mortgage rates in a prudent manner, and shouldn’t cut them to compete for clients, according to the statement, which said the measures are effective March 28.

Residential home prices in first-tier cities including Beijing, Shanghai and Shenzhen have surged amid monetary stimulus from the central bank and a relaxation of housing curbs intended to boost real estate investment. The recovery in China’s property market accelerated last month, with prices rising in the most cities since March 2014, according to official data. Prices in Shenzhen have jumped more than 50 percent over the past year.
Caixin: Shanghai Said to Be Nearing Purchase Curbs for Warming Property Market
Shanghai's government will introduce measures to cool its housing market, including requiring bigger down payments for buyers of second homes, a person with knowledge of the matter says.

The government will announce the new rules in the next few days, the source said on March 23.

The changes would target people purchasing their second home, the person said. For example, second homes of 140 square meters or more would require down payments of 70 percent of the property's price. The ratio for homes smaller than that would be 50 percent.

Banks in Shanghai have been requiring homebuyers to come up with down payments of 40 percent of the property's price tag, no matter the size.

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