(Yicai Global) Nov. 14 -- The China Banking Regulatory Commission (CBRC) issued an emergency notice calling on banking financial institutions in 16 cities with soaring housing prices to conduct special inspections of the real estate financing businesses transacted up to the end of Sept. 2016. The inspections cover compliance with housing loan regulatory requirements and policies, administration of wealth management fund investments, and compliance management among real estate investment trusts.
The 16 cities with soaring housing prices are the east China municipalities of Beijing, Shanghai, Guangzhou, Shenzhen and Xiamen, and southwestern Chengdu.
The stratospheric rise of property prices in first-tier and second-tier cities since Jan. 2016 has aroused concern among Chinese regulators over bubbles in the market and associated risks, and the government introduced corresponding real estate regulatory measures in late September. Since October, local governments and regulatory authorities have rolled out a raft of policies to tighten up controls over real estate lending and avert the occurrence of risks in the real estate market.