Big Four Lenders Offer Loose Second House Loan Policy

SHENZHEN, Jun 24, 2008 (SinoCast via COMTEX) -- CICHF | Quote | Chart | News | PowerRating -- Shenzhen branches of China's Big Four lenders like Industrial and Commercial Bank of China (SEHK: 1398; SHSE: 601398), China Construction Bank (SEHK: 0939, SHSE: 601939), Agricultural Bank of China, and Bank of China (SEHK: 3988; SHSE: 601988) offer a loose loan policy for second house as house prices in the southern developed city slump.

Up 50% of the houses in the Shenzhen real estate sector are bought for investment purposes and some house buyers have trapped in a "negative assets" status, because of the falling real estate market there. So have investors in other cities, like Guangzhou, Beijing, and Shanghai.

A Shanghai branch of a Chinese commercial bank offers a record low interest rate of 6.426% in individual home loans, which is lower than the most preferential legal interest rate of 6.656% for over-five-year home loans, said a salesperson at the branch, in an attempt to complete its annual lending task.

From www.hexun.com, Page 1, Monday, June 23, 2008 info@SinoCast.Com

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