China limits foreigners' housing mortgage

The National Development and Reform Commission (NDRC), China's top economic planner, just released a notice, limiting mortgages for foreigners purchasing properties in China, the Shanghai Securities Journal reported Thursday.

The notice said the long-term foreign debt demand of branches of foreign banks in China for foreigners' mortgage on buying properties in China will not be approved.

According to the notice, yuan funds borrowed by foreign banks for a term of longer than one year will be managed as long-term debts. Moreover, the total amount of local and foreign currencies of one-year term should be no more than the total amount of foreign debt, the report said.

An industry insider said this act will narrow down foreigners' sources of getting fund for housing mortgage and in some way limit their purchase.