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China tightens credit control on property projects

(Xinhua)
Updated: 2008-08-28 16:27

The developers posted their operating income at 58.3 billion yuan, up 37.96 percent year on year. Operating profit was 13.02 billion yuan, up 44.46 percent, while net profit stood at 9.94 billion yuan, up 49.4 percent. The figures were far from the more than 80 percent year-on-year growth rate posted last year.

Due to the credit crunch, property developers had sought to broaden channels of financing. Typically, they shifted some of their attention to trusts, funds and bonds.

The PBOC and the CBRC also called for financial support for indemnificatory housing construction. Strict credit management on rural collective land for construction should be enhanced. Loans would not go to projects in such areas for commercial properties or to rural residents' land purchase for home construction.

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