Fuzhou-based Industrial Bank Co. Ltd (601166.CN) will not grant new loans to some upstream raw material or service suppliers to real estate developers until the end of March as lenders grapple with a liquidity crunch, the Shanghai Securities News reported Monday, citing several unnamed sources. The suspension applies to sectors such as iron and steel, cement, and construction, the report said. Although other banks stressed that their stand on such loans was unchanged, big new-home price cuts in Hangzhou and some second-tier cities indirectly reflect capital chain tension in the real estate industry, the report said. Senior executives from property information provider CRIC were quoted as saying that tight liquidity, rather than macro control measures, pose the biggest risk to developers this year.
– Contact HKEJ at [email protected]ejinsight.com