China limits mortgage loans for foreigners

China’s top economic planner, the National Development and Reform Commission (NDRC), stated that it will no longer approve medium and long-term loans to banks if they intend to use such borrowings to fund mortgages taken out by foreigners.

The world’s most populous country has been putting the brakes on its runaway economy since last year, pinpointing the booming property market as the catalyst. While already clamping down on Chinese property speculators, the authorities are now targeting foreign buyers.

Some see the move as a little late as property prices have already started falling. New home prices fell in 52 out of 70 Chinese cities in December from the previous month, the National Bureau of Statistics said.

Foreign direct investment also fell for the second straight month in December as the environment for overseas money looks less welcoming. Investment into China has surged in recent years with international investors looking to profit from China's booming economy.

Source: Telegraph.co.uk