Shanghai CBRC Halts Banks' Business With 6 Property Agencies
- Property agencies punished include Homelink, Pacfic Rehouse
- Central bank said unauthorized mortgage loans increased risks
China’s banking regulator in Shanghai is halting business between commercial banks and six real estate agencies for a month, the latest in a string of measures to contain risks in the housing market.
The suspension, which takes effect Monday, covers agencies including the local arms of Beijing Homelink Real Estate Brokerage Co., Pacific Rehouse Co. and Shanghai Hanyu Property Brokerage Co., according to a statement by the China Banking Regulatory Commission’s Shanghai office on the city’s official Weibo microblog account. The regulator will also suspend the personal mortgage business for two months of seven local branches of banks including Industrial & Commercial Bank of China, Bank of China Ltd. and HSBC Holdings Plc for violations of lending rules.