Chinese home buyers visiting a housing fair in Yichang, Hubei province. Photo: AFP

The China Banking Regulatory Commission said it will focus on controlling the resident leverage ratio and contain the real estate bubble for the year ahead, Economic Information Daily reported.

In response to the Central Economic Work Conference held at the end of 2017, during which the government set the tone for prevention of financial risks by “promoting a virtuous cycle of finance and real estate,” the CBRC has decided to work on two aspects.

Firstly, the CBRC will act to control the excessive growth of the resident leverage ratio, crack down on misappropriation of consumer loans and unauthorized overdraft of credit cards, as well as strictly control the inflow of personal loans to the stock and housing market.

Secondly, to curb the real estate bubble, the CBRC will seriously investigate and deal with various types of illegal real estate financing.

Meanwhile, the CBRC is requiring the banking industry to focus its efforts on lowering the debt ratio of enterprises, continue to decrease interbank investment, standardize financial holding groups and systematically handle high-risk institutions in an orderly manner.

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