BEIJING, March 19 China will control rapid flows
of bank credit to the property sector to help contain risks, the
head of the country's top economic planning agency said on
This comes at a time when Beijing has pledged to contain
debt and property market risks in 2017, following years of
"We will control the excessive flow of credit into the real
estate sector," He Lifeng, head of the National Development and
Reform Commission, told the China Development Forum in Beijing.
Large amounts of capital has entered the property market,
driving up property prices in first-tier cities and some
second-tier cities and pushing up costs for the real economy, he
Data on Saturday showed China's red-hot property market
picked up pace in February, after a slowdown in price gains in
the previous four months.
Central bank governor, Zhou Xiaochuan, said earlier this
month that government measures to cool rising house prices will
slow mortgage growth to some degree, but housing loans will
continue to grow at a relatively rapid pace.
Household mortgages accounted for 39 percent of China's new
loans last year.
Vice Premier Zhang Gaoli, speaking to the same forum, said
the government was trying to prevent risks in the property
sector. "There could be property bubbles if we do not handle the
situation well," Zhang said.
China will continue to implement city-based policies to
reduce real estate inventories in smaller third- and fourth-tier
cities, Zhang said.
Many local governments in cities which have seen the
sharpest price rises have rolled out a series of restrictions
over the past few months on buying and ownership.
(Reporting by Kevin Yao; Editing by Himani Sarkar)