Foreign media report: CBRC proposes to suspend third mortgage on Beijing, Shenzhen, Shanghai and Hangzhou

"Caijing comprehensive report" according to the Reuters Chinese network, China's Banking Regulatory Commission has recently advised commercial banks to suspend the third set of mortgages in Beijing, Shanghai, Shenzhen and Hangzhou. For those areas that have not been halted, the down payment for the third suite is raised to 60% and the interest rate is up 50%.　　At the same time, commercial banks in accordance with the "State 10" provisions, can decide whether or not to suspend the other areas of the third set of mortgages. Reuters quoted a familiar commercial bank source as saying that the CBRC asked to receive the third suite approval authority to the headquarters.　　Branches to regularly provide a third set of mortgage statistics report, and demand for the third set of mortgages to strictly enforce the policy, can not play a ball.　　In addition, Bank of China regulators last month asked banks to conduct a new round of stress tests to assess the impact of the worst case of a 60% drop in house prices, Bloomberg reported. According to the directive, banks need to take into account the worst that can happen in a city where house prices have soared – home prices fell 50% per cent to 60%--. The source declined to be identified because the regulator's request had not been publicly announced.　　Last year's stress tests assumed prices were down 30%. The scenario is even more severe, probably because of a record 1.4 trillion new loans last year, a loan-driven housing bubble that could lead to a surge in debt. Since mid-April, regulators have tightened mortgages and hit speculation.　　Before that, China's first-quarter house prices surged 68% per Knightfrank, according to an estimate by the London real estate consultancy, Knight Frank's international property consultancy. As early as April 17, the State Council issued the "resolutely curb the rapid rise in the prices of some cities," the notice that the high prices can suspend the third set of housing and more loans.