SHENZHEN is taking the lead nationwide to regulate and control illegal flow of business loans into the real estate market, Shenzhen Special Zone Daily reported, quoting Shenzhen’s financial regulators.

As of now, some 2.16 billion yuan (US$332 million) has been found entering the property sector illegally.

Financial regulators have urged involved banks to rectify and take back the misappropriated loans before the dates set by authorities and have taken administrative penalties against personnel responsible in accordance with the law.

In line with the property purchase restriction policies at the country level, the city’s financial regulators adhere to the principle of “housing is for living in, not for speculation.”

To stringently prevent loans from illegally flowing into the real estate sector, regulators continue to intensify the supervision, regulation and rectification of real estate credit, the Daily report said.

A task force was set up in April 2020 in Shenzhen to address issues related to business loans. During emergency inspections, the lenders were urged to request payment of 21 loans involving 51.8 million yuan before the expiration dates.

Several national commissions, ministries and the central bank jointly released a notice in March this year to keep housing prices stable.

The city has vowed to crack down on misappropriated housing loans and keep land and housing prices stable.

(Xia Yuanjie)