Expert warns of potential risks in soaring housing loan

Guangzhou in South China is no exception to record high home prices. Along with that comes a sky high volume of housing loans. Experts are cautioning investors to be aware of potential risks.

Yin Zhongli, Director of Institute of Finance & Banking, CASS said "Annual new housing loans stood around 3 to 4 trillion yuan in 2007 and 2008. But the figure surprisingly skyrocketed to 7.37 trillion yuan in the first half of this year. Investors should be very cautious."