Recently, there are reports in the media that some CCB branches have raised the proportion of down payments for second homes.  For this, CCB Website has interviewed CCB’s spokesman.

According to CCB’s spokesman, investments in fixed assets in China have been rising continuously in recent years, and the growth in investments in real estates has been particularly spectacular.  As a result, in certain areas, investment overheating has developed, land and house prices have been rising sharply and there are more and more individuals buying more than one residential unit.  In an effort to forestall a financial crisis and to facilitate the healthy development of the property market, CCB has acted in accordance with the requirements of relevant national policies and taken note of its own situation in voluntarily implementing macroeconomic adjustments and in further differentiating requirements on down payments.  In the area of house mortgage loans, it has decided to lend major supports to the purchase of personal housing in the first-hand market.  For lending towards the second housing or more, CCB will gradually lower the proportion of loans to the house prices and will not lend more than 60% in general.  As to loan interest rates, it will carry out the relevant stipulations of the central bank and the China Banking Regulatory Commission (CBRC).  One main purpose of such policy adjustment is to make sure that, while real estate speculations are curbed, limited credit resources would be better focussed in helping improve housing conditions of residents with mid to low incomes.

On September 27th, the People’s Bank of China and CBRC had issued a circular on further tightening the control of commercial real estate loans.  In particular, they had laid down specific requirements on the stringent control of loans for housing consumption.  CCB’s present policy adjustments are in compliance with national requirements to bring the real estate industry into line.  Based on the intent and relevant policies set forth in the aforementioned central bank/CBRC circular, it will further refine its operational guidelines for managing the real estate loan business.  By doing so, it is fully demonstrating its positive attitudes in facilitating the healthy development of the real estate sector and in meeting the demands of housing consumptions for both urban and rural residents.

Since its listing, CCB has adopted the principle of marketisation and have been actively and relentlessly adjusting its equity-debt structure by taking the initiative to give up some high-cost, high-risk deposit and lending businesses.  As a result, it has achieved the highest net interest margin in China's banking sector.  So far this year, it has been actively implementing national macroeconomic policies and industrial policies and has succeeded in reasonably controlling the size and pace of credit growth.  As at September 20th, it has registered a 23.26% growth of various types of deposits while its loans have grown by a 12.85%, clearly showing that it has been running a tight ship in its credit operations.  Meanwhile, CCB has been increasing its effort in adjusting its credit structure.  While continuing to lend support to the construction of national infrastructures and various basic industries, it has focussed on increasing small enterprise loans and personal loans.  As for the 15 industries which have been targeted for controls and risk warnings by various departments at the national level, and also for “high pollution, high energy consumption” industries, CCB has set up extremely tight qualifying and approval standards to ensure its loan quality.  CCB's personal loans are now more than one-third of its new loans and the growth rate of 22.36% of such loans is twice the rate of growth for corporate loans.  This provides an important index to the strategic restructuring of its businesses.  In future, CCB will continue to quicken the pace in developing its retail business and will continue to improve its home financing services in order to maintain its lead in the domestic banking industry.  It is receptive of timely criticisms and suggestions to its home financing services from all quarters of society.