The People’s Bank of China (PBC) Shanghai Head Office; all branches and operations offices of the People's Bank of China, all central sub-branches of the People's Bank of China in provincial capital cities (capital cities of autonomous regions) and sub-provincial cities; the offices of China Banking Regulatory Commission (CBRC) in all provinces (autonomous regions and municipalities directly under the Central Government); China Development Bank; all policy banks, state-owned commercial banks and joint-stock commercial banks; and Postal Savings Bank of China:
To further implement the relevant requirements of the Notice of the State Council on Resolutely Curbing the Soaring of Housing Prices in Some Cities (No.10 [2010] of the State Council), consolidate the regulation achievements in the real estate market, and promote the sound development of the real estate market, we hereby notify you of the relevant credit policies as follows:
I. All commercial banks shall suspend the granting of housing loans to resident families for purchasing the third and ensuing housing units; commercial banks shall also suspend the granting of housing loans to non-local residents who can not provide local tax payment proof or proof of social insurance payment for a period of one year or longer.
II. For the purchase of commercial housing with loans, the down payment shall be adjusted to more than 30% of the total price; for families who purchase a second housing units with loans, it shall be strictly implemented that the down payment shall not be less than 50%, and the loan rate shall not be less than 1.1 times the benchmark rate.
III. All commercial banks shall strengthen the management of consumption loans, and prohibit such loans from being used for purchasing houses.
IV. For the real estate development enterprises which leave any land idle, change the uses and nature of land, delay the time of initiation of project and completion of construction, hold back housing units for future sale, or have other records of violations of laws or regulations, all commercial banks shall suspend the granting of loans to them for new development projects and suspend the extension of loans.
V. Any commercial bank which fails to earnestly implement the differential credit policies shall be seriously punished once the issue is ascertained.
VI. We shall continuously provide support for the loan demands of the real estate development enterprises which undertake the projects of commercial housing at low or medium prices or with small or medium sizes and participate in the indemnificatory comfort housing projects.
VII. Financial institutions shall be encouraged to provide support for the construction of indemnificatory comfort housing projects, and accelerate the formulation of mid and long-term loan policies supporting the construction of public rental housing.
The PBC Shanghai Head Office, all branches and operations offices of the People's Bank of China, all central sub-branches of the People's Bank of China in provincial capital cities (capital cities of autonomous regions), and the offices of the CBRC in all provinces (autonomous regions and municipalities directly under the Central Government) shall jointly forward this Notice to all urban commercial banks, rural commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, and foreign-funded banks within their respective jurisdictions, and report the implementation thereof in a timely manner.
The People's Bank of China
The China Banking Regulatory Commission
September 29, 2010
