Shenzhen Banks Stop Mortgage Lending

财新：多家银行深圳分行暂停发放按揭贷 利率不会随LPR下调

The real estate market has already played the "five limit spectrum."

　　The so-called "five-limit spectrum" refers to the restriction of loans, purchase restrictions, sales restrictions, price limits, and business restrictions, which form a suppression of the real estate market from both sides of supply and demand. In terms of credit limit, the measures adopted by the supervision are mainly through window guidance and compliance inspection, and strictly control the scale of on- and off-balance sheet of real estate personal mortgage loans and development loans.

In this context, individual banks in individual regions have suspended the issuance of housing-related loans. In September 2019, individual stock exchanges in East China had suspended the issuance of real estate development loans (see Caixin.com, “ Banks tightened development loans, individual branches in East China have suspended lending ”).

　　According to Caixin reporter, in mid-November 2019, the Shenzhen branch of the two major state-owned banks , China Construction Bank and Bank of China, has suspended the issuance of mortgage loans. A senior real estate market source told Caixin reporter, "From November 18, 2019, CCB Shenzhen Branch has suspended the lending, and the CCB head office directly closed the Shenzhen branch's (mortgage loan) lending system."

　　A Shenzhen branch of a stock company also confirmed the above information, and said that because of the role of CCB in Shenzhen, the bank is also considering whether to follow up on lending. According to Caixin reporter, Ping An Bank Shenzhen Branch suspended the mortgage loan from October, and “the annual loan quota has been used up”.