China has made a start in reversing excessive capital flows into the real estate market, with the top banking and insurance regulator's measures to rein in funneling of business loans into property financing bearing fruit.
"Property lending portfolio of lenders increased by 10.5 percent on a yearly basis by the end of April, with the growth rate hitting an eight-year low," said Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, at a news conference on Tuesday.
The country's top banking and insurance regulator, together with the Ministry of Housing and Urban-Rural Development and the People's Bank of China, took measures to prevent business loans from flowing into the real estate sector by requiring banks to strengthen borrower qualification verification, credit demand verification and the administration of intermediaries.