China clamps down on risks in rental housing market

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China will curb financial risks in the rental housing market by tightening lendi...

FILE PHOTO: Residential apartments are located in downtown Shenzhen, China April 26, 2017. Picture taken April 26, 2017. REUTERS/Bobby Yip

The ministry described the sector’s development as “chaotic”, saying it had been filled with false listing information and malicious practices such as misuse of loans, illegal withholding of security deposits and forced evictions. Rental housing companies will be guided to set up “capital supervision” bank accounts for their income from rents and deposits to minimize risks, the guidance said. Banks should carefully evaluate firms’ ability to repay the loans, strictly review the use of these loans and prevent them from forming capital pools.

 

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they should crack down on those high rents and cost of living, those poor people! China

Don't restrict people to 4 walls to do business in every aspect of their lives. They need soil, sunlight, trees, birds, animals as their company.

Hmmmm

these are like the chinese wework, they are lenting at a loss just to win market shares.

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